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The Body Shop and Aesop owner snaps up Avon for US$2bn

The Body Shop and Aesop owner snaps up Avon for US$2bn

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Natura & Co has acquired Avon Products in an all-share transaction, creating a multi-brand and multi-channel beauty group with direct connections to consumers on a daily basis. According to reports, the deal is valued at US$2bn.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, such as Asia, said the brand to an article in FT. Natura & Co expects the combination to result in target synergies estimated at US$150 million to US$250 million annually, some of which will be reinvested to further enhance capabilities in digital and social selling, research and development and brand initiatives and to continue to grow the Group’s geographic footprint.According to a press release, the acquisition creates the fourth-largest pure-play beauty group in the world. The combined Group is also expected to have annual gross revenues of over US$10 billion, over 40,000 associates and be present in 100 countries. Leveraging its iconic brands, common passion for relationships, and its omnichannel capabilities, the expanded Group will bring beauty to over 200 million consumers across the world.Luiz Seabra, co-founder of Natura, said it always looked at Avon with “respect and admiration”, and that the transaction creates “a major force” in the direct-to-consumer space. He noted that direct-selling is a social network, and technology and globalisation only “multiplied opportunities” to connect with consumers in a “meaningful way”. Seabra believes that business “can be a force for good” and looks to “amplify” its pioneering efforts to bring social, environmental and economic value to the network.Roberto Marques, executive chairman of Natura & Co, said the combination is an exciting, decisive step to build a global presence, and through it, the company looks to “enhance its digital capabilities and social network of consultants and representatives, creating a formidable platform for growth”.Jan Zijderveld, CEO of Avon, said the acquisition will will allow the company to accelerate its strategy and further expand online.“Over the past year, we have started a transformation to strengthen Avon’s competitiveness by renewing our focus, simplifying our operations, and modernising and digitising our brand. Together with Natura, we will have broader access to innovation and a portfolio of products, a stronger e-commerce and digital platform, and improved data and tools for representatives to drive growth and enhance value for shareholders,” said Zijderveld.“Further, with the support of Natura, we will continue to invest in cutting-edge technology to enhance our digital capabilities and productivity for our Representatives. Both Avon and Natura are purpose-driven organisations, and the combination will enable us to better serve our millions of Representatives, leveraging Avon’s international presence with the same strongly-held commitment to enhancing Her experience and earnings,” he added.

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