L’Oréal Chairman & CEO Jean-Paul Agon has confirmed that the beauty giant has received a firm offer from Natura Cosméticos SA of Brazil to acquire The Body Shop and has entered into exclusive discussions to sell the company for €1bn ($1.1bn).
In a statement, Agon said: “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.
“Natura will support The Body Shop development in the long-term and enable The Body Shop to best serve its customers, while respecting its strong commitments towards its employees, franchisees and stakeholders.
AFTER 11 YEARS, AGON WISHES THE BRAND WELL…
“I would like to thank all The Body Shop employees and partners around the world for their contribution to the development of the brand over the past eleven years and I am confident they will be in the best hands for the future.”
Adding his comments, Jeremy Schwartz, Chairman & CEO of The Body Shop said: “I am sure that all customers, employees, franchisees and stakeholders of The Body Shop will join me in welcoming L’Oréal’s decision to enter into exclusive discussions with Natura.
“The ethical values and expertise of Natura makes it the perfect new owner for The Body Shop to accelerate the rejuvenation of the brand and its future expansion.”
ACQUISITION STILL REQUIRES APPROVALS
The proposed transaction is now due to be submitted to L’Oréal’s employee representative body and is also subject to regulatory approval in Brazil and the United States, with the proposed transaction expected to close during 2017.
Acquired by L’Oréal in 2006, The Body Shop is the British brand founded back in 1976 by Anita Roddick – with the brand an acknowledged pioneer and leader in ethical and natural beauty products which is also present in more than 60 countries.
It currently has distribution channels comprising more than 3,000 points of sale, including e-commerce. In 2016, it generated retail sales of around €1.5bn ($1.6bn) and net sales of €921m ($1bn).