Brazilians win race to snap up the Body Shop

THE Body Shop is set to be sold to a Brazilian cosmetics giant in a shock deal after its owner L’Oreal announced it was in ‘exclusive talks’ over its future.

The French group said Natura Cosmeticos had made an offer that valued the firm and its sprawling network of 3,000 stores in 60 countries at £880m.

L’Oreal announced this year it was reviewing its strategy for the High Street chain, which it bought in 2011 for £652.3m. Bidders lined up, including private equity group CVC and China’s Fosun, but L’Oreal said Natura was the best fit.

Jeremy Schwartz, chairman and chief executive of The Body Shop, said: ‘The ethical values and expertise of Natura make it the perfect new owner to accelerate rejuvenation of the brand and its expansion.’

The retailer was founded in 1976 by Anita and Gordon Roddick, who pitched it as an alternative to traditional cosmetics.

Its anti-animal testing stance was a hit with shoppers, but the firm has become one of L’Oreal’s worst-performing divisions. It has also faced competition from Lush, The Body Deli and Fresh, which offer similar ethical products.