Auréa-led consortium finalises acquisition of The Body Shop

Auréa, a growth capital firm co-founded by Mike Jatania and Paul Raphaël, announced on Monday that it has completed its acquisition of The Body Shop, a pioneer in ethical beauty.

This marks Auréa’s largest transaction to date, underscoring its strategy to back purpose-driven brands within the beauty, wellness, and longevity sectors.

The Body Shop, established in 1976, is renowned for its ethical approach to beauty, offering skincare, body care, hair care, and makeup products using natural, fairly traded ingredients.

With the acquisition,  Mike Jatania will serve as executive chairman, while Charles Denton takes on the role of CEO. Together, they will lead efforts to restore The Body Shop’s global leadership in the ethical beauty sector.

Jatania emphasised the brand’s legacy and Auréa’s commitment to product innovation and customer engagement. “We plan to exceed consumer expectations while staying true to the brand’s ethical roots,” he said.

Charles Denton, meanwhile, acknowledged the need for “bold action” to reinvigorate the business, reaffirming a belief in the brand’s sustainable future.

The acquisition comes as FRP Advisory’s Steve Baluchi, director at Joint Administrators, highlighted confidence in the new leadership’s vision and retail expertise.

The Body Shop: A tumultuous journey

The Body Shop was founded in 1976 by human rights activist and environmental campaigner Anita Roddick. The company was by L’Oréal in 2006 for over a billion dollars and then sold to Natura in 2017 for a similar sum, the brand has faced challenges in recent years.

Despite its once-thriving status, The Body Shop experienced a significant decline in sales in 2022, with a year-over-year drop of 13.5 per cent. This downturn, coupled with the normalisation of direct-to-consumer channels after the pandemic, has put pressure on the brand’s performance

The latest development positions The Body Shop for a revival amid increasing demand for sustainable and ethically produced beauty products.