French cosmetics giant L’Oreal has entered exclusive talks to sell the Body Shop chain to Brazilian make-up company Natura Cosmeticos for €1 billion (£880 million).
L’Oreal said on Friday it had received a firm offer from Natura Cosmeticos, and that the proposed deal put an enterprise value of 1 billion euros on the four decades old beauty brand.
The Body Shop is a pioneer in mass marketing of cosmetics made without animal testing and with natural ingredients. L’Oreal had acquired the Body Shop for £ 652 million in 2006.
Today, The Body Shop operates in more than 60 countries through 3,000 stores, concessions and online shops. In 2016 it generated retail sales of around € 1.5 billion and net sales of € 921 million.
“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,” Chairman & CEO of L’Oreal, Jean-Paul Agon, was quoted as saying.