L'Oreal buys Body Shop for 1.1 billion dollars

0 Comments | AFP, March, 2006

PARIS (AFP) — L'Oreal, the world's leading cosmetics company, said it would buy Body Shop International, renowned for its ethical hair and skin products, for 652.0 million pounds (940.0 million euros, 1.143 billion dollars).

L'Oreal will pay 300.0 pence a share for Body Shop, which will be maintained as a separate entity and continue to be led by its current management team, the French firm said in a statement.

The offer price is 31.5 percent higher than Body Shop's average share price over the six months before February 21, the last day before speculation of a bid emerged, the companies said in a statement.

Body Shop directors holding about 21.6 percent of share capital -- including company founders Anita and Gordon Roddick with 18 percent -- have accepted...