KUALA LUMPUR (Aug 26): InNature Bhd (KL:INNATURE), the operator of The Body Shop outlets in Malaysia, Vietnam and Cambodia, confirmed its expansion to Singapore with the signing of an agreement on Tuesday to acquire The Body Shop Singapore Pte Ltd.
The S$3.16 million (RM10.41 million) acquisition of the Singapore company from The Body Shop International Ltd will be paid for in cash using internally generated funds, said InNature in a filing with Bursa Malaysia.
"The expansion into the Singapore market is expected to further enhance the business relationship between both parties, at an inflection point where The Body Shop International Ltd under the new leadership is seeing gradual normalisation of operations and new products in the pipeline," InNature said.
Citing industry data, the company noted that Singapore’s cosmetics and personal care industry is projected to reach US$1.29 billion (RM5.44 billion) in 2025, with a compound annual growth rate of 1.9% between 2025 and 2030. It added that 45% of the segment’s revenue in Singapore will come from digital channels by 2025.
“The geographical and cultural proximity of the Singapore market to InNature’s primary base in Malaysia provides synergistic opportunities between both markets in enhancing operational efficiencies and expanding digital reach,” the company added.
InNature first disclosed its plans to tap the Singapore market in May after signing a memorandum of understanding with The Body Shop International and The Body Shop Singapore. The Body Shop International is owned by a consortium of investors led by Auréa Group, a private equity firm specialising in beauty and personal care brands.
According to its website, InNature currently operates 105 Body Shop outlets — 72 in Malaysia, 30 in Vietnam and three in Cambodia.
The latest acquisition is conditional upon the fulfilment of conditions precedent, with completion targeted by end-October.
Shares in InNature closed one sen or 5.13% higher at 20 sen on Tuesday, valuing the company at RM144.71 million. The stock has risen nearly 8% year to date.