The Body Shop Says Yes to L'Oreal Takeover
by Warren McLaren, Sydney on 03.21.06
Last Friday the ABC observed that “the world's top cosmetics group” L'Oreal was in the running to takeover the famed social change and fair-trade business advocate The Body Shop. Also on the same day the BBC reported that the deal had been agreed to. Seems the offer was £652m ($1,090m USD) for the French based L'Oreal to own around 2,000 Body Shop stores, across more than 50 countries (selling a product every 0.4 seconds!). According the BBC, Anita and Gordon Roddick, who founded Body Shop 30 years ago and still own 18% of its stock, are expected to make £130m ($228m) from the deal. And they go onto say that Dame Anita commented: "For both Gordon and I, this is without doubt the best 30th anniversary gift The Body Shop could have received," Not sure if she means the money. Or that the industry that she railed against for so many years, has finally deemed to acknowledge that a business model that has consideration for social and environmental welfare is indeed viable and financially attractive. It also helps, no doubt, if that same model has delivered a business that’s been named “the 27th most respected company in the world”. ::The Body Shop, via BBC News.
Yes, I feel it's a great shame and I have to say, I'll think twice before buying from the Body Shop now. Thank goodness for www.lush.co.uk !! A small business with principles . . .
I recently discovered that The Body Shop uses a lot of less-than-safe ingredients -- Then I lost my Love Your Body card, then I found out about the L'Oreal buy. Serendipitous, maybe...
And L'Oreal are 26% owned by Nestle apparently...but overall I think this is a good thing for green business and that Anita is not a sell out as many have called her...she hardly did it for the money.
Wrote a full post on it over on my site.
Namaste
Al
ps personally I prefer a combination of BS, Lush and a variety of other ethical and organic sources for my hygiene needs.
Just another reason to not use Body Shop Products ever again . Ill stick to Lush , Hemma and living nature.
The Body Shop stands for what every other company in the wold seems to forget about. Perhaps those who have commented should take another look at their resources. Step into a Body Shop and ask a sales associate what the company respresents and I think you will all be pleasantly surprised at the genuine answers you will recieve. And think again about how a large company like L'oreal is buying out a company that has extensive values! This could be the end of world hunger!
It's sad that The Body Shop's sold out after all the good work they have done, to one of the most unscrupulous and unethical companies to exist. Why didin't they sell to one of the more ethical companies that were showing an interest? It seems that everyone has their price. L'oreal have tried to buy some credibility and in my opinion have got themselves a real bargain. It works out that they paid just over £300,000. per shop. Peanuts to a giant company like L'oreal.