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.