leadf
logo-loader
viewProactive Group

L’Oréal completes sale of The Body Shop to Brazil's largest cosmetics firm Natura

L'Oreal's decision to sell The Body Shop comes amid weak sales at the brand

beauty
L’Oréal put The Body Shop up for sale in February

French cosmetics giant L’Oréal has completed the sale of The Body Shop to Brazilian beauty company Natura Cosmeticos following approval by regulatory authorities.

The agreement for the sale was in line with the terms laid out on 9 June, which valued The Body Shop at €1bn.

L’Oréal put The Body Shop up for sale in February following sluggish sales at the brand, saying that it wanted to give the business the “best opportunities and full ability to continue its development”.

The Body Shop’s operating profits plunged 38% to €34mln in the year to 31 December 2016 as sales dropped nearly 5% to €921mln. In the key Christmas trading period, the sales decline steepened to 6.3%.

The founder of The Body Shop, Dame Anita Roddick, sold the business to L’Oréal for £652mln in 2006, which was seen as a betrayal by some consumers of the brand that was once viewed as a trendy eco-friendly label.

The Body Shop has more than 3,000 outlets across 66 countries, including 133 in Brazil.

The combination of Natura, Brazil’s largest cosmetics company, and The Body Shop will include about 3,200 stores worldwide and have net sales of about R$11.5bn. 

 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Snowline Gold looking to unlock potential of Einarson and Rouge projects in...

Snowline Gold (CSE: SGD) CEO Nikolas Matysek joined Steve Darling from Proactive to share more details about the company that will begin trading soon on the CSE under the ticker SGD. Matysek talks about that and also about the formation of the company. Matysek also shared with Proactive about...

41 minutes ago

2 min read