Aurelius Group and Epiris Eye $511m The Body Shop Deal

The owner of the Lloyds Pharmacy chain has joined suitors circling The Body Shop.

Aurelius Group is among the businesses eyeing the cosmetics company, which has been put up for sale by its Brazilian owner Natura.

Others eyeing The Body Shop are thought to include private equity firm Epiris and Elliott Advisors, which owns Waterstones, according to Sky News

Once deemed a trailblazer, The Body Shop has become the latest High Street chain to struggle. It has seen sales diminish in recent quarters as the rising cost of living hits consumers in the pocket.

In 2021, Aurelius Group, who you can meet at the Benelux and Nordics Private Equity Conference, acquired Lloyds Pharmacy, which had been struggling financially. Under Aurelius Group’s ownership, Lloyds Pharmacy has returned to profitability. The group hopes the same with The Body Shop deal.

The Body Shop, which is estimated to be worth around $511m, has struggled to maintain profitable growth in recent years, but it remains a cornerstone of many UK high streets, with around 10,000 employees and close to 3,000 stores in 70 countries. After six consecutive quarters of losses, Natura’s goal is to deleverage in a bid to bring back profitability.

In April, David Boynton stepped down as The Body Shop’s Chief Executive, and Ian Bickley, a Natura &Co Board Director, took the helm as interim CEO.

Sales fell by 12 per cent to £130m in the second quarter of 2023.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

This followed a 9.4 per cent drop in the first quarter of 2023.

Natura, which also owns Avon, has said a sale was not guaranteed. The Sao Paulo-based personal care cosmetics group bought The Body Shop for £880m in 2017 from L’Oreal.

Richard Hunter, head of markets at Interactive Investor, said: ‘Body Shop was a brand which was well ahead of its time, but one where time has now caught up with its ethos, most notably the now commonplace avoidance of animal testing on new products.

‘While ESG [environmental, social, and governance] continues to be a powerful theme, Body Shop’s previous attributes which set it apart have all but evaporated.’

Source: ThisIsMoney