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

U.K. Consumer Spending Power WeakensU.K. Consumer Spending Power Weakens
A branch of The Body Shop in central London, U.K., on April 24, 2017. 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.