L’Oreal plans to snatch The Body Shop.
Confirming weeks of speculation, the French beauty giant announced Friday it will make a cash bid to acquire the British ethical manufacturer and retailer. It will offer 300 pence, or $5.27 at current exchange, per share, valuing the company at 652 million pounds, or $1.14 billion.
“A partnership between our companies makes perfect sense,” said L’Oreal chairman and chief executive officer, Lindsay Owen-Jones, in a statement.
“Combining L’Oreal’s expertise and knowledge of international markets with The Body Shop’s distinct culture and values will benefit both companies. We are delighted that The Body Shop’s board has agreed to unanimously recommend our offer to the company’s shareholders. We look forward to working together with The Body Shop’s management, employees and franchises to fulfill The Body Shop’s independent potential as part of the L’Oreal family.”
As reported, L’Oreal had indicated it was interested in The Body Shop in late February, but at that time said it had not approached the company about an acquisition.
For complete coverage, see Monday’s WWD.