07.16.01
British personal care retailer The Body Shop International Plc said on Monday it had conditionally agreed to buy Bellamy Retail Group, its joint venture partner in the United States, for $11 million. The Body Shop will pay for the deal by issuing 7.5 million new shares, representing around 3.9% of its current issued share capital.
It also said it would make a cash payment of $1 million to BRG chairman Adrian Bellamy, who will remain a director of the Body Shop and continue to chair the board of its U.S. operations. The Body Shop entered into a joint agreement with BRG in June 1998, which gave BRG day-to-day operational control of the company's U.S. business and options to acquire up to 51% of that business.
"The purchase of Bellamy Retail Group is a very positive development for the Body Shop. By retaining full ownership of our U.S. business, we will gain the full benefit of a major market opportunity. This transaction also allows us to leverage Adrian Bellamy's retail expertise for the benefit of the entire group," said Body Shop chief executive Patrick Gournay in a statement to the stock exchange.
The Body Shop, a 1980s success story that fell on hard times when other high street retailers muscled in on its niche market, said it would pay Mr. Bellamy a further $1 million a year for consultancy work over the next two years. It also said Bellamy had entered into a seven-year agreement with Body Shop's founders, Anita and Gordon Roddick, which gives them voting rights for 7.425 million of the new shares.
The deal is conditional on approval by shareholders at an extraordinary general meeting on August 9.
It also said it would make a cash payment of $1 million to BRG chairman Adrian Bellamy, who will remain a director of the Body Shop and continue to chair the board of its U.S. operations. The Body Shop entered into a joint agreement with BRG in June 1998, which gave BRG day-to-day operational control of the company's U.S. business and options to acquire up to 51% of that business.
"The purchase of Bellamy Retail Group is a very positive development for the Body Shop. By retaining full ownership of our U.S. business, we will gain the full benefit of a major market opportunity. This transaction also allows us to leverage Adrian Bellamy's retail expertise for the benefit of the entire group," said Body Shop chief executive Patrick Gournay in a statement to the stock exchange.
The Body Shop, a 1980s success story that fell on hard times when other high street retailers muscled in on its niche market, said it would pay Mr. Bellamy a further $1 million a year for consultancy work over the next two years. It also said Bellamy had entered into a seven-year agreement with Body Shop's founders, Anita and Gordon Roddick, which gives them voting rights for 7.425 million of the new shares.
The deal is conditional on approval by shareholders at an extraordinary general meeting on August 9.