Brazilian cosmetics maker Natura &Co has agreed to sell The Body Shop to private investor Aurelius Group in a deal worth $254 million, marking the company’s second major divestment this year.
Natura’s Divestment Strategy
Natura &Co, a Brazilian cosmetics maker, has signed a binding agreement to sell its subsidiary, The Body Shop, to private investor Aurelius Group for an enterprise value of $254.32 million. This marks Natura’s second major divestment this year, following the sale of luxury brand Aesop to L’Oreal in April for $2.53 billion. The move is part of Natura’s broader organizational shakeup and aims to unlock significant value.
Strategic Focus and Profitability
Natura’s Chief Executive, Fabio Barbosa, described the sale as an important step in the company’s new development cycle, allowing Natura to refocus on its core relationship selling expertise in Latin America and optimize Avon International’s footprint. The divestment comes after Natura announced in August that it was exploring strategic alternatives for The Body Shop, including a potential sale, six years after its acquisition from L’Oreal. The company entered into exclusive talks with Aurelius last month as part of its strategic realignment.
Natura’s rapid growth through acquisitions, including The Body Shop, Aesop, and Avon International, led to challenges in profitability. The company’s focus on ‘discipline’ and deleveraging is aimed at returning to profit. The third quarter of the year saw Natura &Co reporting a net profit of 7 billion reais ($1.43 billion), a significant improvement from the previous year, largely driven by the sale of Aesop. Without the divestiture, the net profit would have been 745 million reais.