Brazil's Natura & Co has agreed to buy Avon Products in an all-share transaction worth around US$2 billion which will view it end up being the world's fourth biggest 'pure-play beauty group'.
Under the deal, Natura & Co (who owns Natura, Your body Shop and Aesop) expects to create gross revenues of over US$10 billion each year through Avon and Natura’s 3200 stores and 6.3 million network marketing consultants.
Announcing the takeover, Natura & Co, that will hold 76 percent from the shares, said hello would leverage its “iconic brands, common desire for relationships and it is omnichannel capabilities” to “bring beauty to over 200 million consumers around the globe, anytime, anywhere, every day”.
The group expects the takeover to result “in target synergies estimated at US$150 million to US$250 million annually”.
Natura co-founder Luiz Seabra said the organization had always looked at Avon based and admiration.
“Natura was founded on its desire for beauty and relationships, and today’s transaction creates a major force in the direct-to-consumer space,” he explained.
“Direct selling would be a social networking before the word even existed, and also the arrival of technology and globalisation only multiplied opportunities to connect with consumers inside a meaningful way.
“The peer-to-peer sales model is evolving towards social selling and the power of digital permits the group to go beyond providing products and advice, and advances women empowerment, through financial independence and enhanced self-esteem.
“We think that business could be a force for good and together with Avon, we'll amplify our pioneering efforts to create social, environmental and economic value to an ever-expanding network.”
Avon CEO Jan Zijderveld described the deal was “an exciting new chapter in Avon’s130-year history”.
“It stands as a testament to the progress of our efforts to ‘Open Avon’, and we accept is as true allows us to significantly accelerate our strategy and additional expand in to the online channel,” he said.
“It will even enable us to higher serve our millions of representatives.”
* Established in 1886 by door-to-door salesman David McConnell, in 2022 Avon separated into two companies, Avon Products (operates in all countries except US, Canada and Puerto Rico) and New Avon (operates in US, Canada and Puerto Rico only)
