CJ Group hires Deutsche Bank for The Body Shop bid; LG H&G not interested
03 APR 2017
CJ Group, a South Korea-based conglomerate, has hired Deutsche Bank to prepare a potential bid for The Body Shop, UK-based cosmetic business of French beauty major L’Oreal [EPA:OR], two sources briefed on the matter said.
The news service had earlier reported that the CJ Group was seeking proposals in early March to hire financial advisors for The Body Shop bid.
While CJ Corp [KRX:001040], which supervises the core M&A of the group as a holding company, is likely to lead the deal, the specific bidding entity may be finalized at a later stage, one of the sources said.
The news service had earlier reported that the CJ Group was seeking proposals in early March to hire financial advisors for The Body Shop bid.
While CJ Corp [KRX:001040], which supervises the core M&A of the group as a holding company, is likely to lead the deal, the specific bidding entity may be finalized at a later stage, one of the sources said.
The Body Shop could fit with CJ’s retail operations, pointing to CJ Olive Young, which distributes beauty, personal care, and a wide range of lifestyle products and operates more than 500 stores in South Korea and five stores in China as of 2016, as reported by this news service. CJ Corp owns a 100% stake in CJ Olive Young.
CJ Corp had cash and cash equivalents of KRW 1.17tn (USD 1.1bn) in 2016.
CJ declined to comment. Deutsche Bank declined to comment.
Separately, LG Household & Healthcare (LG H&H) [KRX: 051900], is not interested in acquiring The Body Shop, a company spokesperson told this news service.
The company was reviewing the target, but did not find the target a strategic fit, two sector advisors said. It also prefers a smaller deal size.
LG H&H was mentioned as a potential buyer of The Body Shop in local media reports in February.
Separately, LG Household & Healthcare (LG H&H) [KRX: 051900], is not interested in acquiring The Body Shop, a company spokesperson told this news service.
The company was reviewing the target, but did not find the target a strategic fit, two sector advisors said. It also prefers a smaller deal size.
LG H&H was mentioned as a potential buyer of The Body Shop in local media reports in February.
L’Oreal hired Lazard as it financial advisor. Indicative bids are around mid-April.
The Body Shop has drawn several financial investors including Bain Capital, Advent International, Clayton Dubilier & Rice (CD&R) and KKR [NYSE:KKR]. Apax, Carlyle [NASDAQ:CG], CVC Capital Partners, BC Partners, PAI Partners and American retail store operator Bed Bath & Beyond also have been mentioned as potential buyers.
L’Oreal expects EUR 1bn (USD 753m) for the deal, but its potential bidders value the deal approximately EUR 700m given the potential turnaround work required, as reported.
The Body Shop has drawn several financial investors including Bain Capital, Advent International, Clayton Dubilier & Rice (CD&R) and KKR [NYSE:KKR]. Apax, Carlyle [NASDAQ:CG], CVC Capital Partners, BC Partners, PAI Partners and American retail store operator Bed Bath & Beyond also have been mentioned as potential buyers.
L’Oreal expects EUR 1bn (USD 753m) for the deal, but its potential bidders value the deal approximately EUR 700m given the potential turnaround work required, as reported.
L’Oreal acquired The Body Shop for EUR 941.9m in March 2006.