Is L’Oreal selling The Body Shop?
Global beauty giant L’Oreal is in talks to sell The Body Shop to Natura Cosmeticos, the biggest beauty company in Latin America. The Body Shop has been a pioneer in environmentally friendly beauty and skincare products ever since it was founded by entrepreneur Anita Roddick in 1976. It was bought by L’Oreal in 2006, but a sale was mentioned earlier this year. Or rather, hinted at: L’Oreal said it was exploring “strategic options” to sell the brand, which has not been amongst its top performers.
L’Oreal’s share price is up by nearly 11% year-to-date
SOURCE: Yahoo Finance
L’Oreal and Natura announced last week that they are in “exclusive” discussions, with the Brazilian beauty giant offering the French one $1.1 billion for The Body Shop. Natura was described as “the Mary Kay of Latin America, selling its lotions and makeup door-to-door with nearly 10,000 sales associates worldwide” by The New York Post.
L’Oreal thinks that the company will be a good fit for The Body Shop brand, which has 3,000 stores worldwide and generated sales of around $1.7 billion in 2016. L’Oreal’s CEO, Jean-Paul Agon, said:
“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 stakholders.”
Dominion holds L’Oreal in its Global Trends Luxury Fund.
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