Aurelius Group in talks to acquire The Body Shop next month
(Image credit: The Body Shop).30 Oct 2023 --- Investment company, Aurelius Group is in exclusive negotiations to acquire The Body Shop, with the deal anticipated to be completed in November, according to media reports.
If the transaction is completed, The Body Shop is expected to be valued at a lower price than the previously estimated £400 to £500 million (US$485 to US$606.6 million) range, highlights Reuters. The Brazilian global personal care cosmetics group Natura &Co acquired the British retailer from L’Oreal for €1 billion (US$1.1 billion) six years ago.
Aurelius Group, which owns LloydsPharmacy, has emerged as the preferred buyer over other interested companies including Alteri Investors and Elliott Advisors, while global financial services firm Morgan Stanley is working with Natura to finalize the deal.
The Body Shop is expected to be valued at a lower price than the previously estimated £400 to £500 million.
Restructuring and finances
In August, Natura authorized its Board of Directors to “explore strategic alternatives” including the possibility of a business sale for The Body Shop, its wholly-owned subsidiary.
However, Natura emphasized that there is no assurance that such an exploration will lead to any transaction and that they do not intend to provide updates on this matter.
Natura reported a 1.9% increase in consolidated net revenue during Q2, reaching BRL7.8 billion (US$1.6 billion) at constant currency (a decrease of 4.1% in BRL). In contrast, The Body Shop experienced a 12.5% decline in net revenue at constant currency (12% in BRL).
The Body Shop is well-known for its activism against animal testing for cosmetics and its support of the European Citizens’ Initiative to ban animal-tested cosmetics.
Edited by Venya Patel
