Auréa completes Body Shop rescue deal

Auréa, the growth capital firm co-founded by Mike Jatania and Paul Raphaël, has completed its acquisition of The Body Shop.

This investment represents Auréa’s largest transaction to date.

Jatania and Charles Denton will serve as executive chairman and CEO respectively and will jointly steer The Body Shop’s revival and “reclaim its global leadership in the ethical beauty sector it pioneered”.

Both Jatania and Denton have significant experience and a proven track record in “successfully transforming heritage brands into sustainable growing businesses”.

Auréa said it will apply its investment acumen, industry knowledge and operational expertise to rebuild the business.

The Body Shop was founded in 1976 and has been a “pioneer” of ethical beauty, offering high-quality skincare, body care, haircare and make-up made with natural, fairly traded ingredients from around the world.

The group collapsed into administration in February, just three months after Aurelius agreed a £207m takeover deal.

It was understood that the private equity firm was unsuccessful in its plan to revive The Body Shop’s fortunes after underwhelming trading over the crucial Christmas and New Year trading period.

In February, the German buyout company confirmed it had appointed FRP Advisory as administrator following the group’s collapse in the UK.

Jatania said: “With The Body Shop, we have acquired a truly iconic brand with highly engaged consumers in over 70 markets around the world. We plan to focus relentlessly on exceeding their expectations by investing in product innovation and seamless experiences across all of the channels where customers shop while paying homage to the brand’s ethical and activist positioning.”

Denton, CEO of The Body Shop, added: ” I am truly excited to lead this brand which I have admired for many years. We recognise that revitalising the business will require bold action and a consumer-centric, commercially agile mindset. We believe there’s a sustainable future ahead and working closely with the management team we aim to restore The Body Shop’s unique, values-driven, independent spirit.”

Steve Baluchi, director at joint administrators, FRP Advisory, concluded: “We’re pleased to be able to handover The Body Shop to experienced new owners that have a long track record of successful retail turnarounds. They recognise the enormous value of its household name brand and have a clear vision for its future.”