On June 27th, L’Oréal announced that the contract for the sale of The Body Shop to Natura was signed after receiving the advice of L’Oréal’s Works Council regarding this project announced on June 9th. The proposed sale is subject to clearance by anti-trust authorities notably in Brazil and in the United States, and expected to close during 2017.
Following an extensive review of the strategic options for The Body Shop to ensure its best future development, L’Oréal has received a firm offer from Natura Cosméticos SA to acquire The Body Shop and has entered into exclusive discussions with Natura.
The transaction values The Body Shop at an enterprise value of 1.0 billion euros ($1.1 b).
Acquired by L’Oréal in 2006, The Body Shop is a British iconic brand, focusing on innovative, nature-inspired products. Founded in 1976 by Anita Roddick in Brighton, England, The Body Shop has expanded into a global leader in ethical and natural beauty, with the deep-rooted belief that business can be a force for good. It is now present in more than 60 countries around the world, through various distribution channels including more than 3,000 point of sales and e-commerce. In 2016, it generated retail sales of around 1.5 billion euros and net sales of 921 million euros.
“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. 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”, said Jean-Paul Agon, Chairman & CEO of L’Oréal.
“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,” said Jeremy Schwartz, Chairman & CEO of The Body Shop.
The transaction is expected to close during 2017.