Natura said the deal includes potential compensation of £90 million, adding that both the sale price and compensation would be paid within five years of closing the deal.
This is Natura’s second major divestment this year, within the framework of a broader organizational restructuring, following the agreement announced in April to sell the luxury brand Aesop to L’Oréal for a value of $2.53 billion.
The sale of The Body Shop was “another important step in Natura &Co’s new development cycle to unlock significant value,” Natura CEO Fabio Barbosa said in a statement.
“Refocused, deleveraged and more agile, Natura &Co will now be able to fully focus on its core relationship sales experience in Latin America, while continuing to optimize Avon International’s footprint,” Barbosa said.
Natura announced in August that its board of directors had authorized it to seek “strategic alternatives” for The Body Shop, including a possible sale six years after purchasing it from L’Oreal.
The company entered into exclusive talks with Aurelius last month.
Natura grew rapidly through high-profile acquisitions, including the purchases of The Body Shop, Aesop and Avon International, but ended up struggling with profitability.
This led him to undertake a search for “discipline” and deleveraging last year to return to profits.
In the third quarter, Natura &Co obtained a net profit of 7 billion reais ($1.43 billion), compared to a loss of 560 million reais a year earlier, driven by the sale of Aesop.
Without this divestment, according to Natura, the net profit for the third quarter would have been 745 million reais.