April 17, 2024

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[THE INVESTOR] CJ Group confirmed its intention to acquire UK cosmetics company The Body Shop in a regulatory filing on April 5.

According to news reports, the Korean retail giant has recently named Deutsche Securities as its lead counsel for the acquisition of the natural beauty retailer owned by L’Oreal. The French cosmetics giant confirmed in February that it hopes to sell the brand for 1 billion euro (US$1.07 billion), 11 years after it took over the company for 652.3 million pounds (US$811.77 million). 

With over 3,000 stores in 66 countries, The Body Shop’s earnings have been sliding recently. In the first half of 2016, the 41-year-old company’s revenue fell 0.6 percent on-year to 398.6 million euros and operating losses surged to 22.2 million euros from 7.2 million euros. 

CJ seeks to create synergy with its drugstore franchise Olive Young, says industry watchers. It owns 55.01 percent of the beauty and health chain, which has over 500 branches in South Korea, as well as five in China.

By Hwang You-mee (glamazon@heraldcorp.com)