Follow us twitter facebook
Edition: Global
Click here to subscribe toour free weekly newsletter click here
Companies & industry

Natura buys Avon and becomes the world’s 4th largest cosmetics group

Brazilian cosmetics group Natura &Co has confirmed an agreement to buy US-headquartered beauty group Avon. The all-share transaction values Avon at an enterprise value of US$3.7 billion and the combined group would have an enterprise value of approximately US$11 billion.

With the acquisition of Avon, Natura &Co becomes the world’s fourth-largest beauty group. (Photo: Rafapress / shutterstock.com)

With the acquisition of Avon, Natura &Co becomes the world’s fourth-largest beauty group. (Photo: Rafapress / shutterstock.com)

The merger creates a group with leading positions in relationship selling through Avon´s and Natura’s over 6.3 million Consultants and Representatives, a global footprint through 3,200 stores, as well as an expanded digital presence across all companies. The combined Group is expected to have annual gross revenues of over US$10 billion, over 40,000 associates and be present in 100 countries. With this acquisition, Natura &Co becomes the world’s fourth-largest beauty group.

Natura &Co’s portfolio includes the brands Natura, The Body Shop and Aesop. The addition of Avon should enhance the group’s ability to better serve its different consumer profiles and distribution channels and expand into new geographies.

Synergies and social media

The company expects the combination to result in 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 & development and brand initiatives and to continue to grow the Group’s geographic footprint.

"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. The peer-to-peer sales model is evolving towards social selling,” said Luiz Seabra, Co-Founder of Natura.

The transition from the traditional model of relationship selling to a more digital scheme should indeed be the key to the success of the operation.

As part of this transaction, a new Brazilian holding company, Natura Holding S.A., has been created. Natura &Co’s shareholders will own approximately 76% of the combined company, while Avon shareholders will own approximately 24%.

Vincent Gallon

Portfolio

  • A Natura store in Nolita, New York (Photo: Natura &Co)
  • The Body Shop Oxford Street shop in London (Photo: Natura (...)
  • The Aesop's store on Oscar Freire street in Sao Paulo, Brazil (Photo: (...)
© 2019 - Premium Beauty News - www.premiumbeautynews.com
latest news
Focus
MakeUp in newYork hosted more than 3800 visitors, with a growth of 12% of international guests.

MakeUp in New York moves to Javits Center to continue growing

The latest edition of MakeUp in NewYork was a huge success, announced the organisers. Held at the Center415 on 5th Avenue, in Manhattan, on September 11&12, 2019, the two-day B2B event dedicated to the makeup and skincare supply chain welcomed more than 3800 visitors, with a growth of 12% of international guests. Brazil, Canada, (...)

read more
job opportunities
Experts’ views
100% natural and biodegradable film former offers enhanced sun care protection

Brittany Pease
100% natural and biodegradable film former offers enhanced sun care protection

LexFilm Sun Natural MB is a multidimensional film-forming polymer which imparts superior water-resistance to sunscreens in comparison to leading synthetic polymers. This latest innovation addresses consumers’ demand for natural ecofriendly ingredients, while supporting brands in their new product development goals as they navigate (...)

read more
Webinars
E-shop - latest publications
Handbook. Cosmetics laws & regulations in the USA
100.00 € excl. tax
Regulations on the registration of cosmetic products in China
200.00 € excl. tax
Safety of perfumes and cosmetics. Belarus, Kazakhstan and Russia
200.00 € excl. tax
Go to top ↑

Features

We use cookies to give you a better browsing experience. By continuing your visit to this site, you accept the use of cookies. Read more and set cookies
close