L’Oréal chooses mixed bag for auction of The Body Shop
L’Oréal chooses Brazilian firm Natura, and private equity bidders, for next round of the auction for The Body Shop; bids are coming in at more than €800m
London — L’Oréal has chosen Brazilian cosmetics firm Natura Cosmeticos, as well as private equity bidders, for the next round of the auction for its The Body Shop business, people familiar with the matter said.
CVC Capital Partners, Advent International and Investindustrial Advisors are also among the firms taken through, the people said, asking not to be identified because the process is private. Bids for the lotions and soaps retailer are coming in at more than €800m ($856m), they said. Binding offers are due in early June, one of the people said.
L’Oréal bought The Body Shop, founded in 1976 by British entrepreneur Anita Roddick, more than a decade ago in a deal that valued it at £652m ($833m). The company said this week that it hasn’t yet made a decision on the future of the chain, which saw operating profit drop 38% to €33.8m last year.
Representatives for L’Oréal, CVC and Advent declined to comment. Investindustrial and Natura didn’t immediately respond to requests.
The Body Shop had drawn initial bids from about 15 companies, people familiar with the matter said earlier this month. Its French parent company had said in February that it would explore all strategic options for the business, which has been struggling with heavy competition.