Natura Buys Avon and Becomes the 4th Largest Beauty Company in The World

Company will have US$10 billion in revenue and 40,000 employees

Júlia Moura FILIPE OLIVEIRA
São Paulo

Natura beauty company confirmed that it had acquired American beauty company Avon through a stock acquisition. The deal originated through its Brazilian holding company, Natura & Co.

Together the two will become the fourth largest beauty company in the world in terms of revenue, estimated at US$10 billion, a press release reported.

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Avon on mobile app (Foto: Adriana Toffetti/A7 Press/Folhapress) - A7 Press/Folhapress

Natura & Co. shareholders will keep 76% of the new company, while Avon shareholders will have 24%. The new company will be valued at US$11 billion (R$44 billion).

This Wednesday (22) the Financial Times reported the value of the transaction at US$2 billion. The value of the negotiations was not released.

With this deal, the companies will have annual revenues greater than US$10 billion (R$ 40,2 billion), more than 40,000 employees, and a presence in more than 100 companies.

During the day, the value of the two companies’ share rose and fell. Avon close this Wednesday with a US$ 1,6 billion (R$ 6,4 billion) market value. Natura is valued at R$ 26,7 billion (US$ 6.7 billion).

The Brazilian company hopes that the deal will result in savings of US$ 150 million (R$ 603 million) to US$ 250 million (R$ 1 billion) per year.


 

Translated by Kiratiana Freelon

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