According to Bloomberg News, L'Oréal SA
agreed to buy Body Shop International Plc
, a U.K. retailer of natural beauty products, for approximately £652 million ($1.14 billion) in cash. L'Oréal will pay 300 pence a share, a 12% increase on Body Shop's closing price prior to the sale.
Shares of Body Shop have gained 35 percent in the past year, buoyed by takeover speculation. Stock in L'Oréal has increased 25 percent.
Lindsay Owen-Jones, chairman and CEO, L'Oréal, stated that Body Shop will be maintained as a stand alone business and ruled out any store closures or job losses—according to a Marketwatch report.