The Body Shop owner Natura buys beauty brand Avon for £1.6bn
Natura & Co, the Brazilian owner of the Body Shop, has bought direct-selling beauty brand Avon for $2bn (£1.6bn).
A new Brazilian holding company, Natura Holding, has been established as part of the deal and the combined group is expected to have annual gross revenues of more than $10bn with more than 200m customers globally.
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Shareholders in Natura, which acquired Aesop in 2013 and The Body Shop in 2017, will own 76 per cent of the combined company, which has been valued at $11bn, and Avon shareholders will hold 24 per cent.
Natura's acquisition of the 130-year-old make-up brand will create the world’s fourth-largest cosmetics company.
Natura co-founder Luiz Seabra said: “Direct selling was a social network before the word even existed, and the arrival of technology and globalization only multiplied opportunities to connect with consumers in a meaningful way.
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“The peer-to-peer sales model is evolving towards social selling and the power of digital allows the group to go beyond providing products and advice, and advances women empowerment, through financial independence and enhanced self-esteem.”
UBS Investment Bank and Morgan Stanley acted as financial advisors to Natura and Goldman Sachs advised Avon on the deal. PJT Partners acted as financial advisors to members of the Avon board of directors.