Brazil's Natura Cosmeticos to buy The Body Shop in a $1.1 billion deal

French cosmetics and luxury goods group, L'Oreal has started talks to sell its The Body Shop business to Brazilian make-up company, Natura Cosmeticos in a possible 1 billion euros ($1.1 billion) deal.

L'Oreal said that Natura, Brazil's biggest cosmetics company, has made a firm offer that values The Body Shop at an enterprise value of 1 billion euros.

Jean-Paul Agon , Chairman & CEO, L'Oreal, said, “Natura will support The Body Shop development in the long-term and enable The Body Shop to best serve its customers while respecting its strong commitments towards its employees, franchisees and stakeholders."

Joao Paulo Ferreira, CEO, Natura, said that for his part, The Body Shop would fit in well with Natura's similar businesses, such as its "Aesop" brand.

Founded in 1976 by British entrepreneur Anita Roddick, the company pioneered ethical beauty but has since fallen victim to increased competition from newcomers also offering similar products based on natural ingredients with no animal-testing.