UK/FRANCE. L’Oréal is to acquire Anita Roddick’s The Body Shop for ₤652 million (US$1.1 billion) in cash, the French cosmetics giant announced this morning.
The Body Shop, founded by Roddick, is a specialist in ethically-sourced products. L’Oréal said it planned to operate the British company as a stand-alone business and founder Anita Roddick would remain in her current role as consultant to Body Shop.
The agreed takeover saw a joint statement issued this morning. The French group will acquire the entire issued and to be issued share capital of The Body Shop. The Offer will be at 300 pence in cash for each The Body Shop Share, which values The Body Shop’s existing issued share capital at approximately £652.3 million.
Body Shop directors holding 21.6% of share capital – including company founders Anita and Gordon Roddick with 18% – have accepted the offer. And prominent shareholder Beaverbridge Holdings has granted L’Oreal a call option to buy its 21% stake.
The offer price is +34.2% higher than Body Shop’s closing price of 223.5 pence on 21 February, the last day before speculation of a bid emerged. And it is +31.5% higher than Body Shop’s average share price over the six months until that date, the companies said.
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