Brazilian cosmetics brand Natura Cosmeticos has become the unlikely winner of The Body Shop bidding war, with L’Oréal announcing it has entered into exclusive talks this morning.
Following widespread speculation and many interested parties — including Chinese group Fosun, Goldman Sachs and CVC — L’Oréal has picked the Brazilian firm in a deal that values the ethical cosmetics retailer at €1 billion (£880 million).
Little else is yet known about the deal, other than it is still subject to approval by Brazilian and US regulators, also being submitted to L’Oréal’s employee representative body.
“I am very pleased to announce Natura as the potential new ‘home’ for The Body Shop,” L’Oréal chief executive Jean-Paul Agon said.
“It is the best new owner we could imagine to nurture the brand DNA around naturality and ethics.
“Natura will support The Body Shop development in the long-term and enable The Body Shopto best serve its customers while respecting its strong commitments towards its employees, franchisees and stakeholders.
“I would like to thank all The Body Shop employees and partners around the world for their contribution to the development of the brand over the past eleven years and I am confident they will be in the best hands for the future.”