L'Oreal of France is to buy the Body Shop group in a "seductive" £652 million (€939.28 million) deal to unite the world's top cosmetics group with the British ethically-sourced beauty product retailer.
In a recommended offer that has the backing of 43 per cent of Body Shop shareholders, L'Oreal said it would pay 300 pence cash per share, a 34 per cent premium over the share price on February 21st, when reports of a deal began driving the stock higher.
The Body Shop, whose 11 Irish outlets are run on a franchise basis, is 18 per cent owned by its founder Anita Roddick and her husband Gordon, who will themselves make £118 million from the deal.
With 2,000 outlets selling passion fruit body butter and bilberry hair detanglers, the chain began life in a small Brighton street 30 years ago. The company issued a profit warning in January after posting weaker sales than expected, particularly in Ireland and Britain.
Ms Roddick declared herself beguiled by the Gallic charm of L'Oreal's negotiators.
"Let me tell you how the French seduce you," she said at a news conference.
"They are the most bloody seductive people on Earth. They are charming, they are well-mannered and they praise and flatter you."
Analyst Nick Bubb of Evolution stockbrokers said: "Body Shop isn't the wacky ethical business it once was and it has been going upmarket in recent years, selling more expensive 'masstige' (mass prestige) skincare and so on, so the approach from L'Oreal wasn't that big a surprise."
