The Press and Journal (Aberdeen and Aberdeenshire)
Body Shop owner in line for takeover by Brazilian firm
Cosmetics: L’Oreal in talks with Natura to sell ethical skincare brand
French cosmetics giant L’Oreal has entered into “exclusive” talks to sell The Body Shop to Brazilian cosmetics manufacturer Natura Cosmeticos in a deal potentially worth up to £880million.
Paris-based L’Oreal said yesterday it had received a “firm” offer from Natura to acquire the UK business, which has outlets in Aberdeen and Inverness.
L’Oreal put The Body Shop on the sale block in February, more than 10 years after snapping up the ethical skincare brand.
At the time, the company had said it was “exploring all strategic options” regarding its ownership of the firm founded by the late Dame Anita Roddick.
Yesterday, L’Oreal chairman and chief executive Jean-Paul Agon said: “I am very pleased to announce Natura as the potential new ‘home’ for The Body Shop.”
Jeremy Schwartz, chairman and chief executive of The Body Shop, added the ethical values and expertise of Natura made it “the perfect new owner” of the chain, and said he was confident the move would help to rejuvenate the brand and drive future expansion.
Natura fought off a number of other bidders, including private equity group CVC and China’s Fosun.
The Body Shop has suffered sliding sales, with lacklustre performance in Saudi Arabia and Hong Kong continuing to dog the business.
Sales sank 5% to £784.2million last year, down from £823.7million in 2015.
In February, L’Oreal insisted The Body Shop’s “momentum was good” in Europe – especially in the UK – and across Latin America thanks to a new operation in Chile. Dame Anita and her husband banked around £117million from their 18% stake in the business when they backed the board’s decision to push through a £652.3million sale to L’Oreal in March 2006.
The Roddicks started The Body Shop in 1976 to help support their two young daughters, Justine and Samantha.
The business has 3,000 stores in 66 countries, employing around 22,000 people.