Deals
Brazil's Natura Set to Buy Body Shop in $1.1 Billion Deal
- L’Oreal enters exclusive talks after firm bid from Natura
- Brazilian company plans to finance transaction with debt
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Natura Cosmeticos SA entered exclusive talks to acquire British make-up seller Body Shop from L’Oreal SA, with an offer that values the U.K. chain at 1 billion euros ($1.1 billion).
An acquisition by Natura would represent a major expansion for the Brazilian cosmetics company, which originated as a direct-sales business like Mary Kay or Avon and expanded its retail operation with the $70 million purchase of Australia’s Aesop in 2013. The deal would give Natura new sales channels and more exposure to developed markets, though Body Shop is in “great need of a turnaround” and will require a lot of work, said Giovana Scottini, an analyst at Eleven Financial Research.