L’Oreal, the global cosmetics giant, is contemplating the sale of its The Body Shop business for around €1 billion ($1.1 billion), according to sources quoted in the Financial Times.
The company is said to be considering the possibility in light of worsening operating losses at the ethical business, which are described as increasing to €22.2 million ($23.7 million) in the first half of last year from €7.2 million ($7.7 million) the year before.
The Body Shop was acquired by L’Oreal in 2006 for £652.3 million ($815.9 million), at which time it was present in over 50 countries with a network in the order of 2,000 stores. According to figures quoted in the Financial Times, the chain has since expanded the network to 3,000 stores in 66 countries and is seeking further expansion in its main markets in a bid to “reaccelerate the brand”.
L’Oreal has enlisted bankers at Lazard to help it review its options for the unit, with a number of private equity firms said to have expressed an interest, the Financial Times report continues.
Source: Financial Times