In a notable development, The Body Shop, renowned for ethical beauty, witnesses a change in ownership as private equity firm Aurelius Group acquires it for £207 million ($254 million). The six-year ownership by Natura &Co concludes with this transaction, a move following Natura’s recent divestment of luxury beauty brand Aesop to L’Oréal.
While the deal includes a potential earn-out of £90 million, it falls significantly below the €1 billion Natura paid for the brand. The Body Shop, under the leadership of CEO Ian Bickley, is viewed by Aurelius as an «opportunity to re-energise» the iconic beauty and personal care brand with a robust global presence. Acknowledging The Body Shop’s environmental and social impact initiatives, Aurelius plans to optimize operations and enhance offerings across channels with its operational expertise.
The deal’s closing next month is subject to approval from relevant competition and regulatory authorities. The Body Shop, headquartered in London and employing around 7,000 staff, operates in 89 markets with over 900 company-owned stores and numerous franchised stores globally.
Aurelius emphasizes a focus on omnichannel retail and wholesale markets, leveraging The Body Shop’s heritage in socially responsible products. Despite challenges in the retail market, the aim is to revitalize the business to capitalize on positive trends in the high-growth beauty market.
Ian Bickley expresses excitement about the collaboration with Aurelius, highlighting the brand’s iconic status and commitment to social responsibility. Analysts note challenges ahead for the new owner, emphasizing the need to broaden pricing architecture to appeal to a wider audience and counter the shift towards more affordable retailers.
Tash Van Boxel, Analyst at GlobalData, suggests widening The Body Shop’s appeal through partnerships or concessions with retailers like John Lewis & Partners to reach diverse audiences and tap into ongoing sector demand. The acquisition marks a historic moment for The Body Shop as it looks to adapt, flourish, and sustain profitable growth under new ownership.
