Aurelius Group is reportedly in pole position to acquire The Body Shop.
The investment firm is in exclusive talks with the British beauty brand’s Brazilian owner, Natura & Co, with banking sources telling Reuters a deal could be finalised in November.
The source added that the sale price for The Body Shop may come in significantly under its previously indicated value of £400m to £500m.
The Body Shop was put up for sale by Natura & Co in August, following a long period of declining sales and challenges for the embattled beauty brand.
Net revenue for Q2 2023 dipped 12% at constant currency, with revenues also sliding by 9.4% in the first quarter of the financial year.
The São Paulo-based parent firm also issued staff cuts at The Body Shop.
It slashed 25% of The Body Shop’s leadership team and 12% of its overall staff in February 2023, after poor Q4 2022 financial results.
Natura & Co said at the time it was exploring strategic alternatives for the brand, which included “a potential sale of the business”.
Elliott Advisors, the owner of British book retailer Waterstones, reportedly submitted an indicative offer for the UK cosmetics chain.
Alteri Investors, which previously owned UK-based retailers Bensons for Beds and Missguided, was also rumoured to have made a bid.
Natura & Co originally acquired The Body Shop from beauty giant L’Oréal for US$1.1bn in 2017.
If successful, The Body Shop deal would mark the second brand sale from the Brazilian conglomerate in 2023.
Aesop, which has been owned by Natura & Co for over a decade, was sold to L’Oréal for US$2.52bn in April this year.
It came after Natura & Co first began considering selling a minority stake in the brand in December 2022.
