The Body Shop, which was put up for sale in February after falling profits, has confirmed a $1.12 billion offer by Brazilian cosmetics company, Natura.
Natura, which also owns the Aesop brand, is exclusive talks with The Body Shop and is expected to finalise the deal at the end of this year.
At the initial time of sale, The Body Shop had several offers from both Chinese group Fosun and health firm Renhe, neither of whose offers were excepted.
Natura valued the British beauty brand at USD$1.12 billion and says the deal is subject to regulatory approval and expected confirmation end of this year.
L’Oréal has owned the 40-year-old Body Shop brand since 2006, after founder Dame Anita Roddick sold it for €652 million, and operates stores and products in 66 countries.
L’Oréal, the world’s largest cosmetics company, is selling up because decline has set in at the brand once viewed as a trendy eco-friendly label.
Body Shop’s operating profits dived 38 percent to €34m in the year to 31 December 2016, while sales sank nearly 5 percent to €921m. The pace of decline increased in the final and key Christmas quarter, sliding by 6.3 percent.
Natura said the acquisition would help it take a “decisive step towards internationalisation.”
Jean-Paul Agon, chair, and chief executive of L’Oréal, said Natura was “the best new owner we could imagine to nurture the brand DNA around naturality and ethics”.