German private equity firm Orlando Capital has emerged as the latest player in the running to buy The Body Shop, Retail Week can reveal.
Orlando Capital, which invests in medium-sized companies in the German-speaking and Nordic regions, has emerged as the latest player in the running to buy The Body Shop, after its owner Natura & Co announced plans to explore strategic alternatives including a sale of the struggling beauty retailer.
A source close to the negotiations revealed that Orlando joins Lloydspharmacy owner Aurelius Group, Waterstones owner Elliott Advisors and private equity firm Alteri Investors in the bidding war.
Orlando’s current investments include home textiles business Lomotex and water supply business Ludwig Pfeiffer.
The source described Orlando’s interest as “odd” given that it doesn’t currently have any retail investments or experience working with retail brands.
London-based private equity firm Epiris had also been in the running, but Retail Week understands it has now dropped out of contention.
This comes after our recent report that prospective bidders were being put off by the high valuation of the British health and beauty retailer, with one source describing the price of £400m to £500m as “very optimistic”.
The Body Shop has reported dwindling profits as it continues to face top-line challenges amid tough macroeconomic conditions. In the second quarter of 2023, the retailer posted an 11.6% fall in gross profit and a 12.5% dip in net sales in constant currency terms.
Retail Week has approached Orlando Capital for comment. Natura & Co declined to comment.
No comments yet