Body Shop Confirms Sales Talks

The Body Shop, confirmed today that it was in talks to sell its 1,840 health and beauty products stores to Grupo Omnilife, a multilevel marketing company based in Mexico. According to reports in the British press, the price tag is $500 million, but analysts said $420 million is a more likely selling price.

The Body Shop had sales of $516 million last year, but warned that profits would fall as much as 15% this year because shoppers were rejecting new product concepts.

Grupo Omnilife, was founded in 1991 by Jorge Vergara Madrigal. The company is a leading direct seller in Latin America with a product line that includes dietary supplements, vitamins and weight-loss preparations. The privately-held firm has about one million agents in nine countries, including the U.S. and Spain. A company spokesperson said Grupo Omnilife wants to build on its success in Texas and California, where there are large Spanish-speaking populations.