L'Oreal Buys Body Shop

L'Oreal, the world's largest cosmetics maker, agrees to pay $1.14 billion for Body Shop International, the U.K. retailer of natural beauty products. Shares of Body Shop ' which operates more than 2,000 stores in 53 countries ' climbed 10 percent in London and gained 48 percent in the past year. L'Oreal plans to operate the British company as a stand-alone business with Body Shop Founder Anita Roddick remaining as Consultant.

The Body Shop Board believes that the purchase by L'Oréal will benefit our customers and other stakeholders through the opportunity to extend the reach of The Body Shop brand and its exciting range of products and campaigns in partnership with L'Oréal; it provides good value to shareholders; and ensures an exciting future for The Body Shop employees and The Body Shop At Home consultants within one of the most respected cosmetic companies in the world," says Peter Saunders, chief executive, The Body Shop.