According to Reuters, Brazilian cosmetics maker Natura &Co. has agreed to enter into exclusive talks with private investor Aurelius Group for a potential sale of The Body Shop.
 
Since Natura &Co. put The Body Shop up for sale in September, a number of suitors emerged, including Elliott Advisors, Epiris and Alteri Investors. Aurelius Group, the owner of Lloyds Pharmacy, joined the race earlier this month.

Why the Sale

The Body Shop, which is estimated to be worth around $511 million, has struggled to maintain profitable growth in recent years, but it remains a cornerstone of many UK high streets, with around 10,000 employees and close to 3,000 stores in 70 countries. After six consecutive quarters of losses, Natura’s goal is to deleverage in a bid to bring back profitability.
 
In April, David Boynton stepped down as The Body Shop’s Chief Executive, and Ian Bickley, a Natura &Co Board Director, took the helm as interim CEO.
 
In March, Natura &Co. sold Aesop to L’Oréal.