Private equity house Aurelius is in exclusive talks to acquire health and beauty retailer The Body Shop, which is being sold by owner Natura &Co.
A deal is likely to be concluded next month, according to Sky News, and it is thought that The Body Shop’s valuation will be less than £500m. The sale process has been overseen by Morgan Stanley.
Aurelius already owns Footasylum, which it bought from JD Sports, and LloydsPharmacy, which it has been selling off in parcels.
The Body Shop was a pioneer in ethical retail, famous for its stance on environmental and animal welfare issues adopted by founders Dame Anita Roddick and her husband Gordon. However, that distinctiveness has been eroded as other retailers have increasingly put ESG concerns at the heart of their agendas.
Natura bought The Body Shop in 2017, when it was thought to have paid more than $1bn for the business, which was previously owned by beauty giant L’Oreal.
Natura put The Body Shop up for sale in August. It also sold cosmetics retailer Aesop to L’Oréal for a reported $2.5bn (£2bn) in April 2023.
Natura is understood to be concentrating on its core operations as it seeks to fully recover from the impact of the pandemic.
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