Brazil cosmetics giant Natura buys Avon in all-shares transaction

Brazil cosmetics giant Natura buys Avon in all-shares transaction

The combined company, Natural Holding SA, is expected to have annual gross revenues of more than US$10 billion and be present in 100 countries.

Natura’s acquisition of Avon will form the world’s fourth largest beauty products company. (AFP pic/Getty Images)
SAO PAULO:
Brazilian cosmetics giant Natura said Wednesday that it is buying Avon in an all-share transaction that will form the world’s fourth largest beauty products company.

The combined company, Natural Holding SA, is expected to have annual gross revenues of more than US$10 billion and be present in 100 countries, Avon and Natura said in a joint statement.

Natura shareholders will own approximately 76% of the combined company while Avon common shareholders will own approximately 24%.

Based on Tuesday’s closing prices, the transaction values Avon at US$3.7 billion “and the combined group would have an enterprise value of approximately US$11 billion,” the statement read.

The board of the combined company will have 13 members, three of which will be chosen by Avon.

News that talks were underway bolstered stock prices of both companies.

Natura shares jumped 9.43% on the Sao Paulo stock exchange, while Avon shares were up 9.06% to US$3.49 in New York trading.

In 2017 Natura bought the British cosmetics company The Body Shop.

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