Body Shop, Omnilife Buyout Talks End

Body Shop International said buyout talks with Omnilife de Mexico have ended, wiping out as much as 24% of the retailer’s value.

A source close to the talks suggested the $423-million deal fell apart because Omnilife, a supplier of nutritional supplements, had failed to secure enough funding.

Omnilife said it had secured financing for the deal but decided it would be better for both companies to go their own ways and focus on their own businesses.

The Wall Street Journal reported this month that a deal depended in part on the ability of Omnilife to borrow about $250 million for the purchase.

Founded by Anita Roddick in 1976, Body Shop changed the face of cosmetics retailing by refusing to stock products tested on animals. It has more than 1,841 stores worldwide. The British company said this week it is in talks to buy out U.S. partner Bellamy Retail Group, which has an option to acquire as much as 52% of Body Shop’s U.S. business.