Brazil-based cosmetics company Natura &Co has agreed to sell The Body Shop to international private equity group and Lloyds Pharmacy-owner Aurelius for £207m – £660m less than the £870m it paid for the business six years ago.
The enterprise value of the deal includes an earn-out of £90m, with both the price and the earn-out payable up to five years after closing, which is expected to occur by the end of the year, subject to customary regulatory approvals.
Morgan Stanley served as financial advisor and Cleary Gottlieb Steen & Hamilton as legal advisor to Natura &Co.
In a statement, Natura &Co said the sale will allow it to continue its drive to refocus on its strategic priorities, notably accelerating the integration of the Natura and Avon brands in Latin America, focusing on its core relationship selling model, and further optimising Avon International’s footprint.
Aurelius already has experience in the retail sector through its investments in Footasylum, an omni-channel retailer of fashion streetwear and sportswear based in the UK as well as global catering group LSG Sky Chefs.