Natura announced this morning in teleconference, which concluded on December 7, the acquisition of 100% of the shares issued by The Body Shop International Plc., totaling an investment of US $ 1.2 billion, or 13 times the company’s EBITDA.
Natura Group net debt to EBITDA ratio expected to return to pre-deal level by end 2022.

The growth plans for The Body Shop were announced as well as its organizational structure, which will be based in the UK. The EBITDA of the acquired company is expected to double in 5 years, reaching between 12% and 14%, against the current 8%.

“The Body Shop and Natura have always had synergy in their purposes and always observed each other with mutual admiration, each one in one side of the ocean,” said Guilherme Leal, owner of Natura, when presenting the new Natura Group, now comprised of the brands Natura, Aesoap and The Body Shop.

He highlighted the vision and synergy of the Group’s brands aims, committed to generating a positive socio-economic and environmental impact, to create value for all businesses, brands and geographies.Among these values are: education and health benefits for consultants; products with plant formulas; Traceable ingredients, with sustainable cultivation, fair trade with suppliers, no animal testing, carbon neutral business, and support for public education. “They are 3 strong brands that share a common vision and strong belief in scientific innovation,” he emphasized.

Structure

The administrative structure of the three global businesses will be conducted autonomously, with CEO and Executive Committee itself, a new CEO for The Body Shop to be named and Robert Chatwin as vice president of Brand Transformation. There will be also professionals for other key areas to be named.

The remainder of the Natura Group’s structure will feature Roberto Marques as Executive Chairman of the Board of Directors – the three founding partners will be co-chairs of the Board – and Peter Saunders, former CEO of The Body Shop will join the Board of Directors. João Paulo Ferreira, remains president of Natura and Michael O’Keefe, as president of Aesoap. The new governance group should capture synergies, allocate resources and drive consolidation.

The mission of the Group Operations Committee, in addition to contributing to the development of the Natura Group, will mainly be to manage resources between the business units, identifying synergies in each of them, leveraging Natura’s presence in multiple sales channels and in major global markets with an extensive portfolio of products covering key categories.

LojaBodyShop
With the acquisition of The Body Shop, the group’s global presence has been expanded with a large geographic presence of the brand in important markets. “With this transaction we went from regional player to global player,” said Robert Chatwin. He says that the group knows that Natura will reach new regions of the world, but he remembers that the brands of the group do not believe in animal tests. “There is great potential for value creation. We will not go into markets that do not respect this ethic, “said the vice President of Brand Transformation.

As great part of the cities where The Body Shop is not present is in China and Natura, as well as Aesoap has no presence in the Chinese market, it is therefore, a large market for the three brands. “We are monitoring China. We will talk about China at the right time. It’s a vast market and it’s in our plans, “said Robert Chatwin.

With the acquisition of Natura, it increases its participation in franchises and digital presence, where only in the American market the brand has 28% penetration, and increases the presence of the group in skin care, the largest category in the beauty industry.

In 2016 Natura and Aesoap together earned $ 4.4 billion in sales, The Body Shop $ 1.6 billion. Net Revenues of US $ 2.3 billion, EBITDA of US $ 385 million and 8 thousand employees. The Body Shop alone achieved in 2016 US $ 1.6 billion in sales, US $ 1 billion in net revenue and EBITIDA of US $ 82 million, with 10,000 employees.

consultoras

Among the measures planned to promote the growth of The Body Shop are: rejuvenating brand, bringing back its activism and avant-garde spirit, into the concept of consistent store, recovering lost traffic, renewing the geographical presence of the stores, revitalizing its network of franchisees and greater investments in digital marketing, with the implementation of the Hybris e-commerce system (click & collect), besides rationalizing costs and improving organizational productivity.

In October the name of the The Body Shop´s CEO  will be announced, one of the requirements is that he is aware of the international retail, company said.

The operations of each brand will be independent, but will be reported to the Group. The Operations Committee will promote a number of supporting activities for each business, such as introducing the direct sale of The Body Shop in Latin America, accelerating Natura’s and Aesoap’s international growth, seeking gains in scale and efficiency in the leasing of resources , such as access to a supply chain.