A new step to focus on strategic priorities
SÃO PAULO, Nov. 14, 2023
/PRNewswire/ -- Natura &Co (NYSE – NTCO; B3
– NTCO3) announces that it has reached agreement to sell The
Body Shop to international private equity group Aurelius, marking a
new step in the Group's strategy to simplify and refocus its
operations.
Under the transaction, Aurelius has signed an agreement to
acquire The Body Shop for an enterprise value of GBP 207 million, including an earn-out of
GBP 90 million. The price and the
earn-out will be payable in up to five years after closing. The
closing of the transaction is expected to occur by December 31, 2023, and is subject to customary
regulatory approvals. Morgan Stanley served as financial advisor
and Cleary Gottlieb Steen &
Hamilton as legal advisor to Natura &Co.
With the transaction, Natura &Co will continue its drive to
refocus on its strategic priorities, notably accelerating the
integration of the Natura and Avon brands in Latin America, focusing on its core
relationship selling model, and further optimizing Avon
International's footprint.
The Body Shop will benefit from Aurelius' strong track record in
building up companies to continue its transformation journey.
AURELIUS, a globally active investment firm, already has experience
in the retail sector through its investments in Footasylum, an
omni-channel retailer of fashion streetwear and sportswear based in
the UK as well as global catering group LSG Sky Chefs. AURELIUS
seeks to enhance ESG aspects in its portfolio companies and is
committed to maintaining The Body Shop's long-standing, distinctive
values, instilled by its founder, Dame Anita Roddick.
Under Natura &Co's ownership since 2017, The Body Shop has
undergone an overhaul of its product portfolio and a rejuvenation
of the brand, notably through a more contemporary redesign of its
stores, with the Changemaking Workshop that enhanced stores and
customer experience worldwide, and of its refill program, now in
place in nearly 800 stores. The Body Shop also became a certified B
Corp™ in 2019, broadening its sustainability commitments and
regaining its advocacy voice.
Fabio Barbosa, Chief Executive
Officer of Natura &Co, declared: "With the sale of The Body
Shop, we are taking another important step in Natura &Co's new
development cycle to unlock significant value. Refocused,
deleveraged and leaner, Natura &Co will now be able to fully
concentrate on its core relationship selling expertise in
Latin America while also
continuing the optimization of Avon International's
footprint and investing in initiatives and innovations that
positively impact people and the planet. We are pleased to have
found a strong home for The Body Shop to write the next chapter in
its remarkable story, and we extend our sincerest thanks to all The
Body Shop's associates, who contributed immensely to broadening
Natura &Co's horizons. We wish them continued success under the
stewardship of Aurelius."
Ian Bickley, CEO of The Body
Shop, said, "Today, we celebrate a truly historic moment for The
Body Shop as we join forces with Aurelius to begin a new chapter,
allowing us to continue building the relevancy of this global brand
for future generations. With a presence in over 80 countries, The
Body Shop is not only a beauty brand, but also an iconic social
business that has captured hearts in nearly every corner of the
world. We are deeply grateful to Natura &Co for their
unwavering support and I'm looking forward to working hand in hand
with Aurelius as we adapt and flourish in new global retail
environments, always with an eye on sustainable and profitable
growth."
"We are delighted to be undertaking this acquisition of an
iconic British brand, which pioneered the cruelty-free and natural
ingredient movement in the health and beauty market. We look
forward to working with CEO Ian
Bickley and his team to drive operational improvements and
re-energise the business and help to deliver the next chapter of
success," comments Tristan Nagler,
Partner at Aurelius.
About Natura &Co
Natura &Co is a global
purpose-driven group uniting Natura, Avon, and The Body
Shop. We connect more than 200 million clients worldwide,
engaging them through 7 million dedicated Consultants and
Representatives, 2,000 stores and franchises, and 30,000
employees.
We believe in promoting real positive economic, social,
and environmental impact. We believe that the world does not
need another big company. The world needs symbols of
change capable of blazing new trails and inspiring others to
follow. We believe in the power of cooperation, co-creation,
and collaboration for a better way of living and doing
business.
About Aurelius
Aurelius is a globally active
alternative investment group, distinguished and widely recognized
for its operational approach. Its key investment platforms are
Aurelius European Opportunities fund IV and the listed Aurelius
Equity Opportunities SE & Co. KGaA.
Aurelius group has been growing significantly in recent years
and now has EUR 11 bn in revenues and
more than 300 professionals working out of 10 offices across
Europe and North America. Aurelius focused on private
equity, private debt, and real estate.
Aurelius is a renowned specialist for complex investments with
operative improvement potentials such as corporate carve-outs,
platform build-ups or succession solutions as well as specialised
financing solutions.
With more than 250 transactions completed to date, Aurelius has
built a strong track record for delivering superior returns to its
investors through its flexible approach, uncompromising focus on
operational excellence, ability to carry out multi-dimensional
transactions, prudent risk management and long-term investment
philosophy.
Contacts:
Natura &Co
Emilia Lebron
Head of External Communications
+44 (0) 7580 816371
Emilia.lebron@avon.com
Brunswick Group
São Paulo + 55 11 3076 7620
London + 44 020 7404 5959
natura@brunswickgroup.com
AURELIUS
Dentons Global Advisors
Humza Vanderman / Methuselah
Tanyanyiwa
Tel: +44 (0)7824 472501
Aurelius@dentonsglobaladvisors.com
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