Shares of Avon Products Inc. (AVP) rose more than 15% in the extended session Wednesday after Brazilian cosmetics and skin care company Natura & Co. said it planned to buy the iconic U.S. counterpart in an all-stock deal that would create the fourth largest pure-play beauty group in the world. Natura takes a page from Avon's roots in peer-to-peer sales and an army of consultants, and the combined company is expected to have annual gross revenue of more than $10 billion, employ more than 40,000 associates, and be present in 100 countries. "By adding Avon to a portfolio that already includes Natura, The Body Shop and Aesop, Natura & Co will enhance its ability to better serve its different consumer profiles and distribution channels and expand into new geographies," Natura said in a statement. The deal values Avon around $3.7 billion, and the combined group would have an enterprise value of about $11 billion. Natura plan to list American depositary shares on the New York Stock Exchange after the deal is completed, which is expected in early 2020.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 22, 2019 20:24 ET (00:24 GMT)
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