Natura dispute with funds to buy The Body Shop network, l '' Oréal

Natura has his eye on a big international active: the network of The Body Shop stores, today in the hands of the French multinational L '' Oréal, according to market sources. The sustainable appeal cosmetics today has 3000 shops in the world (119 in Brazil), was put up for sale by L '' Oréal earlier this year. In addition, large international investment funds would be in contention. France intends to raise ¤ 1 billion, but sources claim that the active should come out at a discount of about 20%.
Global cosmetics giant, L''oreal bought The Body Shop uk in 2006 for about $1.1 billion (in the season). Founded by Anita Roddick in 1976, the company intended to maintain your sustainable profile even within the structure of the French giant – which, according to analysts, ended up not happening. Last year, according to the British newspaper The Guardian, the company returned to reaffirm that chased ethical principles in 2020, including reducing dependence on petroleum-derived packages.
The sale of the business would be linked to the reduction of the results of the retail network. Last year, global sales of The Body Shop had fall to 5% to ¤ 920 million, while profit had a low of 38% and amounted to ¤ 33,800,000. In announcing those results, last February, the L '' Oréal confirmed that the Division was for sale.
Although the results have worsened, sources claim that Natura is not alone in the race for The Body Shop – international funds, with Advent International, also would be in the running.
Grip. According to sources heard by the report, the deal''s adherence to the strategy of nature – starting with sustainable proposal, one of the main assets of the brazilian brand. More than that, the purchase of The Body Shop would represent a bet the company on multichannel strategy. With 3000 stores, The Body Shop has a global presence comparable to current Natura''s main rival, O Boticário, which has 3900 units – including some points of sale abroad.
Although Natura is opening its own units, said a market analyst who asked not to be identified, the mark "mom" always have to try to balance the traditional retail and online expansion not to "cannibalize" the resellers from door to door, where does the bulk of the company''s revenue. Although announced in 2016 that intend to have hundreds of shops in the country, the company has not yet reached the ten units.
Abroad, the company has retail experience with the Australian network Aesop, of high standard, which was bought by brazilian in two phases, in 2011 and 2016. For your premium positioning, based only on imported items, the network also has had difficulty to expand in Brazil, stressed the market analyst. Today, the Aesop has only two stores in São Paulo.
A market source says that, if the price of ¤ 800 million (about 2.7 billion R$) of confirmation, this is a possible value for Natura. "The company has a low debt level of about 1.5 time Ebitda (earnings before interest, taxes, amortization and depreciation)," noted one source. "An increase in leverage is possible."
Sought, the Press Office of Natura report contact did not respond until the closure of this edition. L '' Oréal said having no official position of the group.