Saturday, June 10, 2017

BUSINESS: Brazilian Group Closes In On £880M Deal


 In business news, French cosmetics giant L’Oreal has entered exclusive talks to sell the Body Shop chain to Brazilian make-up company Natura Cosmeticos for €1bn (£880m).

According to business news sources, L’Oreal said Natura had made a firm offer for the business, which it put up for sale following a review announced earlier this year. L’Oreal acquired the Body Shop for £652m in 2006.


The Body Shop was founded by Anita Roddick in 1976 and quickly became a pioneer for ethical and nature-inspired beauty products.

But it has faced fierce competition in recent years from rivals also offering products based on natural ingredients and no animal testing.

Today the Body Shop operates in more than 60 countries through 3,000 stores, concessions and online shops. In 2016 it generated retail sales of around €1.5bn and net sales of €921m.

L’Oreal shares were up around 1pc on the Paris stock exchange in early trading this morning.

Jean-Paul Agon, chairman and chief executive of L’Oreal, 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."

Meanwhile Jeremy Schwartz, chairman and chief executive of the Body Shop, said the “ethical values and expertise of Natura” made it the “perfect new owner” for the chain.

Paolo Leschiutta, vice president and senior credit officer at Moody’s, welcomed the news: “L’Oreal’s plans to sell The Body Shop is positive because without the division we expect the group to report stronger organic growth and higher profitability going forward.

"These benefits compensate for a modest loss of business diversification and support L’Oreal’s rating remaining strongly positioned in its Prime-1 category.” As reported by business news sources.


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