L'Oreal to Sell Body Shop to Natura Cosmeticos

By Nick Kostov Features Dow Jones Newswires

Nick Kostov (+33610157402)

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PARIS--L'Oreal SA said Friday it has entered exclusive talks to sell The Body Shop to Natura Cosméticos SA, after reviewing the strategic options for what has been its worst-performing business in recent years.

Natura, Brazil's biggest cosmetics company, has made a firm offer that values The Body Shop at an enterprise value of 1 billion euros, L'Oreal said. The proposed deal is subject to regulatory approval in Brazil and in the United States.

Social and environmental campaigner Anita Roddick founded the Body Shop in 1976 with her husband, Gordon. The chain has since expanded to more than 60 countries but it has struggled in recent years amid tough competition and muted growth in its home market of the U.K.. In 2016, The Body Shop posted a 4.8% decline in sales to €920.8 million.

"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, Chairman & CEO of The Body Shop.

L'Oreal said it expects the proposed deal to close in 2017.

Continue Reading Below

PARIS--L'Oreal SA said Friday it has entered exclusive talks to sell The Body Shop to Natura Cosméticos SA, after reviewing the strategic options for what has been the French beauty-products company's worst-performing business in recent years.

Natura, Brazil's biggest cosmetics company, has made a firm offer that values The Body Shop at an enterprise value of 1 billion euros ($1.12 billion), L'Oreal said. The proposed deal is subject to regulatory approval in Brazil and in the United States.

British social and environmental campaigner Anita Roddick founded the Body Shop in 1976 with her husband, Gordon. The chain expanded to more than 60 countries, but it has struggled in recent years amid tough competition and muted growth in its home market of the U.K. In 2016, The Body Shop posted a 4.8% decline in sales to EUR920.8 million.

"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, Chairman & CEO of The Body Shop.

L'Oreal said it expects the proposed deal to close in 2017.

-Write to Nick Kostov at nick.kostov@wsj.com

(END) Dow Jones Newswires

June 09, 2017 03:31 ET (07:31 GMT)