Retailcosmetics

L’Oreal Is in Talks to Sell The Body Shop to Brazil’s Natura Cosmetics

By Reuters
U.K. Consumer Spending Power Weakens
A sign sits outside a branch of The Body Shop, operated by L'Oreal SA, in central London, U.K., on Monday, April 24, 2017. U.K. consumer confidence weakened in the first quarter and households were the most pessimistic on their finances in more than two years, according to a study from Deloitte LLP, developments that may weigh on the economy. Photographer: Jason Alden/Bloomberg via Getty Images
Jason Alden—Bloomberg via Getty Images

French cosmetics and luxury goods group L’Oreal (LOREAL-S-A) has started talks with Brazilian make-up company Natura Cosmeticos (NUACF) over selling its Body Shop business, L’Oreal said on Friday.

L’Oreal added in a statement that the companies’ proposed transaction placed an enterprise value of $1.1 billion on The Body Shop business.

L’Oreal said earlier this year that it was reviewing its strategy for The Body Shop, which it bought for $840 million in 2006, and the sale of the business had attracted a wide range of bidders.

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Founded in 1976 by British entrepreneur Anita Roddick, the company was a pioneer in the ethical beauty industry but has since fallen victim to increased competition from newcomers also offering similar products based on natural ingredients and no animal-testing.