Avon Confirms Advanced Takeover Talks With Natura

Avon Products Inc. confirmed Wednesday that it is in advanced deal talks with Natura & Co. The business put out a statement saying it confirmed the company “is in advanced discussions with Natura & Co. regarding a potential all-stock transaction.” The company also said there was no guarantee a deal would take place, and that it would not comment further. The statement partially confirms a report from The Financial Times that Natura was in talks to buy 76 percent of the company at a valuation of more than $2 billion. If the deal goes through, it would give Natura another project of a business. The Brazilian direct seller has been working to turn around The Body Shop since it bought it from L’Oréal in 2017, and Avon would also require work. Natura also owns Aesop. The Avon business has struggled in recent years, and posted $3.75 billion in net sales for calendar 2018, down about 10 percent from the prior year. The company spun off its North America operations in 2016, selling a majority position to private equity firm Cerberus Capital Management and intending to focus on its larger international markets. The North America division was especially troubled, and continued to struggle under new ownership.

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