L’Oréal to sell The Body Shop to Natura Cosméticos

France-based L'Oréal has received an offer for the purchase of The Body Shop and has entered into exclusive talks with Natura Cosméticos.

The proposed transaction takes the valuation of The Body Shop to €1bn. L'Oréal acquired the British brand in 2006. Set up in 1976 by Anita Roddick in Brighton, the cosmetics company has expanded into an ethical and natural beauty brand. It is has more than 3,000 stores in more than 60 countries, as well as an e-commerce site.

In 2016, The Body Shop posted retail sales of around €1.5bn and €921m of net sales.

L'Oréal's chairman and chief executive officer (CEO) Jean-Paul Agon 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.

“Natura will support The Body Shop's development in the long-term and enable it 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.”

The Body Shop's chairman and CEO Jeremy Schwartz said: "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 make it the perfect new owner for The Body Shop to accelerate the rejuvenation of the brand and its future expansion."

The proposed deal will be submitted to L'Oréal's employee representative body. It is also subject to regulatory approval in Brazil and in the US.

The proposed transaction is expected to close during 2017. L'Oréal has 34 brands and generated sales of €25.8 billion in 2016. The firm employs 89,300 people worldwide.."