03.30.16
Avon Products, Inc. and Barington Capital Group, L.P. have reached an agreement, settling issues over Avon's Board of Directors. The agreement is in connection with Avon's 2016 Annual Meeting of Shareholders, which will held on May 26, 2016.
Barington Capital Group includes NuOrion Partners AG, as well as other investors, which collectively own over 3% of the outstanding shares of the Avon Products.
Under the terms of the Agreement, Barington has been granted the right to approve the appointment of an independent director to the Avon Board that will be selected jointly by the Company and Cerberus Capital Management, L.P.
Barington has also agreed to withdraw its nominations for election to Avon's Board of Directors at the Company's 2016 Annual Meeting and to vote all of its shares in favor of the nominees proposed by the Avon Board.
Chan W. Galbato, Avon's non-executive Chairman of the Board, said, "We are pleased to have reached this settlement agreement with Barington, which allows us to avoid a potential proxy contest. We have a process underway to identify the additional independent Board member and we look forward to working with Barington to complete that process."
James A. Mitarotonda, Chairman and Chief Executive Officer of Barington, stated, "We have spent time with Avon's management team and members of the Board discussing our strategic and operational suggestions, and we are confident that Avon is taking the necessary actions to improve the long-term performance of the Company. We are also pleased that the Company is actively strengthening its Board with the recent reconstitution and the addition of Cerberus representatives, and we supported the appointment of Cathy Ross who was announced this morning. We believe these are all positive developments regarding the direction of Avon and look forward to providing whatever assistance we can to help the Company."
Barington Capital Group includes NuOrion Partners AG, as well as other investors, which collectively own over 3% of the outstanding shares of the Avon Products.
Under the terms of the Agreement, Barington has been granted the right to approve the appointment of an independent director to the Avon Board that will be selected jointly by the Company and Cerberus Capital Management, L.P.
Barington has also agreed to withdraw its nominations for election to Avon's Board of Directors at the Company's 2016 Annual Meeting and to vote all of its shares in favor of the nominees proposed by the Avon Board.
Chan W. Galbato, Avon's non-executive Chairman of the Board, said, "We are pleased to have reached this settlement agreement with Barington, which allows us to avoid a potential proxy contest. We have a process underway to identify the additional independent Board member and we look forward to working with Barington to complete that process."
James A. Mitarotonda, Chairman and Chief Executive Officer of Barington, stated, "We have spent time with Avon's management team and members of the Board discussing our strategic and operational suggestions, and we are confident that Avon is taking the necessary actions to improve the long-term performance of the Company. We are also pleased that the Company is actively strengthening its Board with the recent reconstitution and the addition of Cerberus representatives, and we supported the appointment of Cathy Ross who was announced this morning. We believe these are all positive developments regarding the direction of Avon and look forward to providing whatever assistance we can to help the Company."
