GROWTH capital firm Aurea last Saturday (7) announced its acquisition of UK-based cosmetics group, The Body Shop, renowned for ethical hair and skin products.
The 50-year-old business entered administration in February, which led to FRP Advisory being brought in to try to salvage part of the group.
Soon after, The Body Shop announced it would shutter almost half of its 198 stores in Britain. On collapsing, it employed about 1,500 staff across its UK stores, and a total 7,000 worldwide.
“This investment demonstrates Aurea’s focus on backing purpose-led and differentiated brands in the Beauty, Wellness and Longevity sector and represents its largest transaction to date,” Aurea said in a statement.
Remaining stores are expected to continue trading under the new deal.
German private equity firm Aurelius had bought The Body Shop in November, but the retailer ran into trouble in a tough economic climate over the key Christmas trading period.
The Body Shop was founded in 1976 by Anita Roddick and has become a staple of the British high street, but it has been under various owners since she sold it to French cosmetics giant L’Oreal in 2006. Roddick, who died in 2007, rapidly expanded the business from modest beginnings with a determination to offer products that had not been tested on animals.
She also set out to make her business environmentally friendly, with customers encouraged to return empty containers for refilling at the original shop 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 over 70 markets around the world,” said British tycoon and Aurea co-founder Jatania.
“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.”
Jatania and his brothers George, Vin and Danny made their fortune from Lornamead, a leading privately held global marketer of personal care brands. It was founded by George, the eldest of the Jatania brothers, who came to the UK with his family from Uganda. George passed away in February 2023 in Dubai at the age of 72 after a brief illness.
Hailing from Gujarat, India, the Jatania family relocated from Uganda to the UK in 1969.
In 1978, they established the Jatania toiletries business.
They acquired Yardley in 2005 from Procter & Gamble, and later sold it in 2012. They also bought Unilever’s hair care brands Finesse and Aqua in 2006.
Lornamead expanded internationally, selling products in 50 countries. In 2013, the family sold the business to the Hong Kong based Li & Fung Ltd.
While the Jatania brothers exited the personal care sector, they retained property investments in the UK, particularly in London.
Rahul Bhatt sparks controversy over 'insensitive' remarks about sisters Alia and Pooja Bhatt