L'Oreal Finds Buyer for The Body Shop
L'Oreal this week said it has entered into "exclusive discussions" with Brazil-based Natura Cosmeticos SA to acquire The Body Shop. The proposed transaction values the business at 1.0 billion euros ($1.1 billion).
"I am very pleased to announce Natura as the potential new 'home' for The Body Shop. It is the best new owner we could imagine to nurture the brand DNA around 'naturality' and ethics," said Jean-Paul Agon, L'Oreal's chief executive officer. "Natura will support The Body Shop development in the long-term and enable [the company] to best serve its customers."
Acquired by L'Oreal in 2006, The Body Shop has focused on innovative, nature-inspired products since its founding in 1976 by Anita Roddick in Brighton, England. The brand now has a presence in more than 60 countries through various distribution channels, including more than 3,000 stores as well as e-commerce operations. In 2016, the company generated retail sales of roughly 1.5 billion euros ($1.68 billion) and net sales of 921 million euros ($1.03 billion).
The Body Shop has struggled in recent years as all-natural products and ethical practices have become more commonplace throughout the cosmetics industry. L'Oreal announced in February that it was exploring options.
"The ethical values and expertise of Natura make it the perfect new owner for The Body Shop to accelerate the rejuvenation of the brand and its future expansion," said Jeremy Schwartz, ceo of The Body Shop.
The proposed transaction will be submitted to L'Oreal's employee representative body and is subject to regulatory approval, notably in Brazil and the U.S. The proposed transaction is expected to close before the end of 2017.
L'Oreal ranked 15th on CGT's list of the Top 100 Consumer Goods Companies for 2016.