L’Oreal is planning on selling The Body Shop to the biggest beauty company in Latin America, Natura Cosmeticos, the companies said on Friday.
Brazilian-based Natura offered $1.1 billion for the 40-year-old, all natural Body Shop, which L’Oreal put on the block earlier this year. The companies are in “exclusive” dialogues.
Natura is the Mary Kay of Latin America, selling its lotions and makeup door-to-door with nearly 10,000 sales associates worldwide. It also owns Aesop, an Australian skin and hair products company in which it took a majority stake in 2012 and purchased the rest of the company last year.
L’Oreal bought The Body Shop in 2006 and earlier this year said it was examining “strategic options” to sell the underachieving brand.
Body Shop, an initiator in the environmentally friendly movement, was founded in 1976 by Anita Roddick and has since expanded to 3,000 stores.
It produced sales of around $1.7 billion in 2016, L’Oreal said.
“Natura will support The Body Shop development in the long-term and enable The Body Shop to best serve its customers while respecting its strong commitments towards its employees, franchisees and stakeholders,” said L’Oreal chief executive Jean-Paul Agon.