Growth capital firm Aurea announced on Saturday the completion of its acquisition of UK-based cosmetics group The Body Shop, known for its ethical hair and skin products.
The 50-year-old business went into administration in February, which led to FRP Advisory being brought in to try to save part of the group.
Soon after, The Body Shop announced it would close almost half of its 198 stores in Britain. At the time of the collapse, it employed around 1,500 people in its UK stores and a total of 7,000 worldwide.
“This investment demonstrates Aurea’s focus on supporting well-known and differentiated brands in the Beauty, Wellness and Longevity sector and represents its largest transaction to date,” Aurea said in a statement.
The remaining stores are expected to continue trading under the new agreement.
German private equity firm Aurelius had bought The Body Shop in November, but the retailer struggled in a tough economic climate during the key Christmas period.
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Founded in 1976 by Anita Roddick, The Body Shop has become a staple of the British high street but has been under various owners since it sold to French cosmetics giant L’Oreal in 2006.
Roddick, who died in 2007 of a cerebral hemorrhage, quickly expanded the business from modest beginnings with a determination to offer products that had not been tested on animals.
It has also set out to make its business environmentally friendly, with customers encouraged to return empty containers for refills at the original store in Brighton on England’s south coast.
Mike Jatania and Charles Denton will serve as executive chairman and CEO, respectively.
“With The Body Shop, we have acquired a truly iconic brand with highly engaged consumers in more than 70 markets around the world,” said British tycoon and Aurea co-founder Jatania.
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“We intend to focus relentlessly on exceeding their expectations, investing in product innovation and seamless experiences across all channels where customers shop, paying homage to the brand’s ethical and activist position.”
Source: AFP