07.26.19
Following much speculation, and some confusion over a deal with LG, Natura & Co has announced the acquisition of 130-year-old Avon Products, Inc. in an all-share transaction, which they say creates “the fourth-largest pure-play beauty group in the world and a major force for good in the industry.” (Avon ranked No. 13; and Natura No. 18 in Beauty Packaging’s Top 20 Companies of 2018—stay tuned to this year’s list in BP’s October/November 2019 issue.)
According to Natura, the combination creates a best-in-class multi-brand and multi-channel beauty group, with direct connections to consumers on a daily basis. The group will hold leading positions in relationship selling through Avon´s and Natura’s over 6.3 million consultants and representatives, a global footprint through 3,200 stores, as well as an expanded digital presence across all companies. The combined Group is expected to have annual gross revenues of over $10 billion, over 40,000 associates and be present in 100 countries.
Under the terms of the transaction, Natura would create a new holding company for the combined business, called Natura Holding SA, which would own both Natura and Avon. That business would be owned by shareholders of both companies, with Natura shareholders owning 76% and Avon shareholders holding 24% of the company. Natura & Co owns Natura, The Body Shop and Aesop.
According to Natura, the combination creates a best-in-class multi-brand and multi-channel beauty group, with direct connections to consumers on a daily basis. The group will hold leading positions in relationship selling through Avon´s and Natura’s over 6.3 million consultants and representatives, a global footprint through 3,200 stores, as well as an expanded digital presence across all companies. The combined Group is expected to have annual gross revenues of over $10 billion, over 40,000 associates and be present in 100 countries.
Under the terms of the transaction, Natura would create a new holding company for the combined business, called Natura Holding SA, which would own both Natura and Avon. That business would be owned by shareholders of both companies, with Natura shareholders owning 76% and Avon shareholders holding 24% of the company. Natura & Co owns Natura, The Body Shop and Aesop.
