Dive Brief:
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Natura & Co. has entered into an exclusivity agreement with Aurelius Investment Advisory Limited for the U.K. firm to potentially acquire The Body Shop, according to a filing Monday with the Securities and Exchange Commission. Aurelius declined to comment.
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Natura & Co. in August said it was looking for a potential buyer for the personal care products brand.
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The Brazilian cosmetics company, which runs a namesake beauty and wellness brand, acquired The Body Shop in 2017 and three years later acquired Avon. Natura also once owned a majority stake in Aesop.
Dive Insight:
After years of building up its portfolio, Natura & Co. seems to be reversing course.
The conglomerate in April sold Australian cult luxury beauty brand Aesop to L’Oréal Group for $2.5 billion. Months of rumors leading up to that deal included reports that LVMH and Shiseido were possibly interested. Natura had acquired a 65% majority stake in Aesop in 2012 for about 68 million Australian dollars (about $71.6 million according to reporting at the time).
The Body Shop, founded in England in the 1970s and known for its environmental and social activism, would fit with Aurelius’ approach of integrating ESG considerations into its investments. Natura a few years ago brought back a recycling program that The Body Shop had instituted decades before, and the brand has since expanded its refill policy to include makeup. The Body Shop became a certified B Corp in 2019 and has about 2,500 retail locations, both owned and franchised, in more than 80 countries.
However, Natura in its filing Monday said that the “terms and conditions of the potential sale are under negotiation and there is no assurance the transaction will be completed.”
The Body Shop has struggled for years, and in its most recent annual report Natura said that 2022 was the most difficult year in its history. David Boynton in April stepped down as The Body Shop’s CEO after five years at the helm, as the company reiterated its commitment to the brand’s turnaround.
