L’Oréal sale of The Body Shop signed with Natura Cosmeticos

By Lucy Whitehouse

- Last updated on GMT

L’Oréal sale of The Body Shop signed with Natura Cosmeticos

Related tags Body shop Cosmetics

L’Oréal has announced that the contract for the sale of The Body Shop to Natura has been signed.

The global beauty giant says that the signing came after receiving the advice of L’Oréal’s Works Council regarding this project announced on 9 June.

The proposed sale is subject to clearance by anti-trust authorities notably in Brazil and in the United States, and expected to close during 2017. The contract signing means that all being well legally, the acquisition of The Body Shop by Natura is likely to close as expected this year.

New Brazilian home

Natura Cosméticos is a Brazilian manufacturer and marketer of beauty products, household, and personal care, skin care, solar filters, cosmetics, perfume and hair care products.

After integrating The Body Shop, the combined Natura group would have a turnover of R$11.5bn, with 17,000 employees and 3,200 stores, according to the Financial Times.

I am sure that all customers, employees, franchisees and stakeholders of The Body Shop will join me in welcoming L’Oréal’s decision to enter into exclusive discussions with Natura,​” Jeremy Schwartz, Chairman & CEO of The Body Shop, has said.

“The ethical values and expertise of Natura make it the perfect new owner for The Body Shop to accelerate the rejuvenation of the brand and its future expansion.”

A broader offering

Analysts have noted that the acquisition would probably be a savvy one for Natura, as it means the dominant Brazilian personal care player will be able to develop its global profile.

Hannah Symons, beauty and personal care analyst at market research provider Euromonitor International, recently gave the firm’s perspective on the deal.

“The prospect of Natura Cosmeticos acquiring The Body Shop makes sense in the context of Natura’s existing portfolio and its shared values. Upon purchasing Aesop in 2012, Natura has facilitated the sustained growth of the brand’s best-in-class, mono-brand retail strategy,​” the analyst suggests.

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