Natura agrees to sell The Body Shop for R$1.25 billion. See who bought

Natura agrees to sell The Body Shop for R.25 billion. See who bought

The deal is expected to be completed by December 31, 2023, Natura said.

Photo: Marcos Sugio/Disclosure/Estadão

Sao Paulo – Natura & Co nature On Tuesday the 14th, Cosméticos announced the signing of a binding agreement with Aurelius Investment Advisory for the sale of the series. Body Shop. The value of the deal is estimated at 207 million pounds sterling (1.25 billion Brazilian riyals), to be paid within five years. A binding agreement indicates that the buyer has a firm commitment to close the deal described in the contract.

According to a Natura statement, the transaction is expected to be completed by December 31, 2023 and is subject to usual regulatory approvals. Aurelius, based in Germany, owns the Lloyd’s pharmacy chain in the UK.

“The sale transaction will support Natura&Co’s efforts to improve its operations and streamline its business, as well as enable it to focus on strategic priorities, especially the integration of Natura and Co. Avon In Latin America, the direct selling model and the further improvement of Avon’s international presence,” the company says, in a related fact filed with the CVM.

The Body Shop chain was bought by Natura in 2017, in a deal worth €1 billion (about R$3.6 billion at the time). At the time, the company already owned the Australian network Aesop, which it purchased in 2012 for about US$70 million. The plans were to create a large international operation. But the experience was not positive. This year, Natura has already divested from Aesop, which was sold to L’Óreal for US$2.5 billion.

Natura&Co executives confirmed that the announcement of the binding agreement to sell The Body Shop is part of the process of restructuring the company’s operations to simplify its work. “We are continuing the simplification journey,” CEO Fabio Barbosa said during a conference call to present third-quarter results. He added: “The sale of The Body Shop is in line with our strategies. This is an important step in strengthening our business.”

According to Barbosa, the sale of Aesop was crucial for Natura to deliver a consolidated net profit of R$7.024 billion in the third quarter, reversing the net loss scenario from the same period in 2022. “The sale of Aesop helps us return to a net cash position,” commented Barbosa.