The Avon lady has a new boss: Natura & Co., a Brazilian personal care company, said Wednesday it's acquiring the famed cosmetics brand to create the fourth-largest global beauty company.
The deal, valued by Natura at around $3.7 billion, caps Avon's strategic pivot to focus on foreign markets, where sales have been stronger in recent years. The company, whose roots date to the late 19th century, in 2016 moved its corporate headquarters to London and sold its North American business to private equity firm Cerberus Capital Management for $435 million.
Natura & Co., a consolidation of the beauty brands Natura, The Body Shop and Aesop, said the combined company will have a combined $10 billion in revenue. Natura said it expects the Avon merger to generate $150 to $250 million in revenue annually. It's expected to close in early 2020.
As part of the all-stock transaction, Natural & Co. shareholders will own about 76% of the combined company, while Avon shareholders will own nearly 24%.
Avon's share price soared 16% after hours Thursday on the New York Stock Exchange to $4.05 per share.