The Brazilian group has reached an settlement to promote iconic world magnificence The Physique Store to personal fairness group Aurelius for GBP 207 million, simply a fifth of the worth Natura paid for it to L’Oréal in 2017 (EUR 1 billion).

The closing of the transaction is predicted to happen by December 31, 2023, and is topic to customary regulatory approvals.

With the sale of The Physique Store, the Natura &Co group is making a brand new step within the its drive to simplify and refocus on its strategic priorities, notably accelerating the mixing of the Natura and Avon manufacturers in Latin America, specializing in its core relationship promoting mannequin, and additional optimizing Avon Worldwide’s footprint.

Underneath Natura &Co’s possession since 2017, The Physique Store has undergone an overhaul of its product portfolio and a rejuvenation of the model, notably via a extra modern redesign of its shops. Nonetheless, Natura & Co has been struggling for years to enhance the model’s efficiency.

“With the sale of The Physique Store, we’re taking one other essential step in Natura &Co’s new growth cycle to unlock vital worth. Refocused, deleveraged and leaner, Natura &Co will now have the ability to totally consider its core relationship promoting experience in Latin America whereas additionally persevering with the optimization of Avon Worldwide’s footprint and investing in initiatives and improvements that positively impression individuals and the planet,” mentioned Fabio Barbosa, Chief Government Officer of Natura &Co.

The Physique Store, which is headquartered in London, has operations in 89 markets with over 900 company-owned shops in 20 nations and partnerships with head franchisees who function roughly 1,600 franchised shops in an extra 69 geographies.

Tristan Nagler, Companion at Aurelius, help the fund needs to drive operational enhancements and re-energise The Physique Store. Aurelius already has expertise within the retail sector via its investments in Footasylum, an omni-channel retailer of vogue streetwear and sportswear primarily based within the UK in addition to world catering group LSG Sky Cooks.

Aurelius group has been rising considerably lately and now has EUR 11 billion in revenues.