BRAZILIAN cosmetics maker Natura &Co has agreed to sell The Body Shop to private equity firm Aurelius.

The deal values The Body Shop at £207m, which is a fraction of the £880m price tag Natura paid to acquire the business from L'Oréal.

This move represents the second major divestment by Natura this year following the sale of Aesop.

Natura's chief executive, Fabio Barbosa, described the sale as an important step in the company'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 optimisation of Avon International's footprint," Barbosa added.

The Body Shop was founded in 1976 as one of the first companies with ethical consumerism as its driving ethos. It now has 2,500 shops across 70 countries.

Natura entered exclusive talks with Aurelius last month.

The firm had grown rapidly through high-profile acquisitions, but ended up struggling with profitability.

(c) 2023 City A.M., source Newspaper