Body Shop bidders offput by £500m valuation

Natura & Co, owners of The Body Shop, has valued the brand at £500m, potentially deterring the private equity bidders considering the purchase, Retail Week has reported.

A source close to negotiations has explained: “The price of £400m to £500m is very optimistic given the business is going through a lot of transformation and is in need of major operational improvements.”

Natura & Co announced the potential sale of the retailer in August 2023 after it’s failure to revive its finances post-pandemic. The beauty brand more recently reported a 11.6% decrease in net sales for the second quarter of 2023.

In 2017, Natura originally acquired The Body Shop from L’Oréal in a deal valued at €1bn (£864m).

Lloyds Pharmacy owners Aurelius Group, Epiris and Elliot Advisors are still in the running for the take over.

The Body Shop owner has given interested parties until October 23 to submit their offers.