L'Oréal’s The Body Shop has acquired a 51% stake in the Emporio Body Store in Brazil, with the option to increase its stake to 80% by 2019.
Established in 1997 in Porto Alegre by Tobias Chanan, Emporio Body Store sells a complete range of cosmetic products it distributes through a network of franchisees. Emporio Body Store's 2012 consolidated turnover was €7 million. According to L’Oréal, the business has grown significantly in the past two years. There were just 36 outlets in 2010 and 130 units are expected to be open by the end of 2013.
Chanan will remain CEO of the group with the objective to expand the business through the franchise channel. The company will propose to Brazilian consumers a range of The Body Shop's most popular products complemented by new products developed locally with L'Oréal's Research Centre in Rio de Janeiro, according to L'Oréal.
"I am delighted by this opportunity to launch The Body Shop brand in Brazil through this new venture with Emporio Body Store. We are looking forward to introducing The Body Shop products to discerning Brazilian consumers who appreciate naturally inspired, sensorial products,” said Jeremy Schwartz, chairman and CEO The Body Shop/
"We are thrilled to associate our company Emporio Body Store to The Body Shop and the L'Oréal Group,” added Chanan. In The Body Shop, we have found our kindred spirit: thanks to the synergy of our values, vision and culture, we will have the opportunity to greatly accelerate our business in Brazil."
The acquisition is subject to the approval of the Brazilian Anti-Trust Authority CADE, and should be completed before the end of the year.