BRAZIL: The Body Shop, a L’Oréal unit, has acquired a 51% stake in the Emporio Body Store in Brazil, with the option to increase its stake to 80% by 2019, according to the company.
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. In 2012, Emporio Body Store realized a consolidated turnover of nearly $10 million. According to L’Oréal, the business has grown significantly in the past few years. There are approximately 130 shops expected to be open by the end of 2013, up from just 36 outlets in 2010.
Chanan will remain CEO of the group with the objective to expand the business through the franchise channel. The company will offer 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, noted 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.
The acquisition is subject to the approval of the Brazilian Anti-Trust Authority CADE, and should be completed before the end of the year.