logo-loader
FinanceInvestments and investor services
Avon Products

Avon shares looking rosy on reports of Natura Cosmeticos acquisition

Both company’s boards have approved the deal, according to a Wall Street Journal report

Woman applying makeup
Natura also owns British cosmetics company The Body Shop and Australian skincare brand Aesop

Shares of Avon Products Inc (NYSE:AVP) got a pop of color Wednesday morning on news that the company is being acquired by Brazilian company Natura Cosméticos, according to a report from the Wall Street Journal.

Both company’s boards have approved the deal, after which Natura would own about 76% of the combined entity, with the rest held by Avon shareholders. The sale is expected to be announced Wednesday.

Investors were blushing as the stock gained nearly 15% in pre-market trading.

READ: Avon stock up on talk of potential sale to Brazilian rival Natura

A potential sale has been rumored for months as the cosmetics maker – long known for its door-to-door sales techniques – has struggled to adapt to an online marketplace. The company cut 2,300 jobs in January, according to the Financial Times.

In March, the London-headquartered company confirmed that it was in talks with Natura, which also owns British cosmetics company The Body Shop and Australian skincare brand Aesop.

Avon’s North American business also changed hands recently. LG Household & Health, a Korean consumer-goods company, bought Avon’s North American business in April from private-equity firm Cerberus Capital for $125 million, WSJ reported.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Quick facts: Avon Products

Price: $4.78

Market: NYSE
Market Cap: $2.12 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Qrons seeking to find a cure for traumatic brain injuries...

Qrons Inc (OTCQB: QRON) CEO Jonah Meer tells Proactive the New York-based biotechnology company is developing two products, one of which involves a 3D-printable scaffold, aimed at helping to treat traumatic brain injuries. Meer says that traumatic brain injuries are the number one cause of...

11 hours, 29 minutes ago

2 min read