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L'Oréal Strengthens Position in Brazil with Body Shop Acquisition of Emporio Body Store
Posted: October 15, 2013
L’Oréal announced The Body Shop will acquire of 51% of the Emporio Body Store in Brazil, with the option of increasing its shareholding to 80% by 2019. Founded in 1997 in Porto Alegre by Tobias Chanan, the Emporio Body Store business offers a range of beauty products sold through a franchise network.
In 2012, Emporio Body Store achieved a consolidated turnover of 20 million Reals (approximately €7 million ). Since 2011, when Helio Seibel (Grupo Ligna) became the major shareholder, the business has grown strongly and increased from 36 points of sale in 2010 to 84 in 2012, to reach an estimated 130 points of sale end of 2013.
The founder of Emporio Body Store, Tobias Chanan, will remain CEO of the group with the objective to expand the business through the franchise channel. The company will offer 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, in accordance to The Body Shop’s strict requirements and values.
Jeremy Schwartz, chairman and CEO The Body Shop, said, “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.”
And Chanan commented, “We are thrilled to associate our company, Emporio Body Store, [with] The Body Shop and the L'Oréal Group. 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.