Natura, a São Paulo-based personal care cosmetics group, announced on Tuesday it has signed a binding agreement with Aurelius Investment Advisory for the sale of The Body Shop, a British cosmetics chain. The deal is valued at USD 254 million.
In a material fact to the markets, Natura said the deal includes an earn-out of GBP 90 million (USD 112 million). “The price and the earn-out will be payable in up to five years after closing,” the company said.
The move comes just six years after Natura bought The Body Shop from French group L’Oréal for EUR 1 billion (USD 1.08 billion) and months after the Brazilian group sold luxury brand Aesop to L’Oréal for USD 2.53 billion.
The divestments show that Natura is distancing itself from the global ambitions it once bore. Besides The Body Shop deal in 2017, the Brazilian group also bought door-to-door seller Avon two years later.
Now, the company is trying to “streamline its operations and simplify its businesses, as well as position it to focus on strategic priorities, notably the integration of Natura and Avon in Latin America, the direct selling model, and further optimization of Avon International’s footprint.”
Natura share prices were up by as much as 8 percent on Tuesday morning.
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