Brazillian cosmetics conglomerate Natura has confirmed exclusive talks with European private equity firm Aurelius Group for the sale of British sustainable cosmetics retailer The Body Shop.
First reported by Sky News on Sunday, the talks were later confirmed in a regulatory filing with the US Securities and Exchange Commission (SEC).
“The terms and conditions of the potential sale are under negotiation and there is no assurance the transaction will be completed,” said Natura.
Previously cited bidders for the group included private equity firm and Waterstones owner Elliot Advisers, and private equity firm Epiris, owner of TGI Fridays.
French big-cap L’Oréal sold The Body Shop to Natura back in 2017 in a deal valuing the company at €1bn (£870 million).
The Body Shop’s estimated valuation has since dropped below £500 million according to JPMorgan Chase & Co (NYSE:JPM).
Natura executives noted changing consumer trends coming out of the pandemic for The Body Shop’s underwhelming performance, despite being a mainstay of the British high street.