Natura & Co continues to make waves in the beauty and retail industry as it actively explores the potential sale of its subsidiary, The Body Shop, a renowned British brand specialising in cosmetics, skincare, and fragrances.

This move comes hot on the heels of Natura & Co’s sale of the Australian luxury brand Aēsop to L’Oréal in a monumental deal valued at $3.7 billion (US$2.5 billion).

Natura & Co has entered into exclusive discussions with the private investor Aurelius Group regarding the prospective sale of The Body Shop. While the exact terms of the deal are yet to be finalised, expectations are that the sale will value The Body Shop at an amount lower than the £400 million – £500 million ($763 million-$695 million) range reported by some media outlets.

This strategic decision follows Natura & Co’s August announcement, where the company’s board of directors authorised the exploration of “strategic alternatives” for The Body Shop, including the possibility of selling the business. This decision to part ways with The Body Shop occurs six years after Natura & Co’s acquisition of the brand from L’Oreal and is prompted by a prolonged period of declining sales.

Natura & Co originally acquired The Body Shop from L’Oréal for US$1.1 billion ($1.7 billion) in 2017. Several potential buyers, including Elliott Advisors, Epiris, and Alteri Investors, expressed interest in The Body Shop. However, Aurelius Group, the owner of Lloyds Pharmacy, has recently joined the competition, intensifying the battle for the subsidiary. In response to these developments, shares of the Brazilian conglomerate experienced an increase of more than 2 percent.

This development coincides with a significant change in leadership at The Body Shop, with David Boynton stepping down as CEO. Boynton had held this position since 2017, the same year Natura & Co acquired The Body Shop, originally founded by Anita Roddick in England in 1976 before being sold to L’Oréal. He has been succeeded by Ian Bickley, who assumes the role of interim CEO with a mandate to refine the business plan, accelerate the transformation agenda, and guide the company toward profitability.

As of now, the specific terms and conditions of the potential sale remain under negotiation, making it a significant development that industry observers are closely monitoring.

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