RIO DE JANEIRO, BRAZIL – The Natura Group announced on Friday, January 3rd, the completion of the purchase of Avon Products and that the company’s board of directors approved the incorporation of the US cosmetics manufacturer, in a deal that created the world’s fourth-largest beauty group and valued its 130-year-old US rival at approximately US$2 billion.
The company reported that Avon shareholders will own 27.3 percent of the group, while the remaining 72.3 percent will be owned by Natura shareholders.
Natura further said it will appoint Roberto Marques as CEO of the combined company’s board of directors. The executive headed the purchase of the The Body Shop international store chain by Natura in 2017 and will lead the integration efforts with Avon.
The group’s shares hiked 4.33 percent at around 3:40 PM, while the IBOVESPA index retreated 0.24 percent amid a general decline in the market due to concerns over the situation in the Middle East following a US attack that killed an important military authority in Iran.
Earlier, Avon Products CEO Jan Zijderveld left the US cosmetics manufacturer following the company’s sale process. Zijderveld’s position will be taken by Angela Cretu, who will command Avon’s operations outside Latin America.
Through the acquisition of Avon, Natura created four operational units, each with its own CEO. The Natura & Co Latin America operation, which in addition to the Natura and Avon brand includes The Body Shop and Aesop brands, will be led by João Paulo Ferreira.
The executive president of Avon, now within Natura & Co, will be the Romanian veteran of the US company Angela Cretu, in charge of the brand’s operations outside Latin America.
The command of The Body Shop will remain under David Boynton; the same occurs with Michael O’Keefe at Aesop.
Natura received the endorsement from governmental competition authorities for the purchase of Avon on December 19th and at the time had expected the operation to be finalized by last Friday.
The Brazilian company announced the purchase of Avon in May of last year, in a deal made through an exchange of shares. The combined company has an estimated value of US$11 billion.
Founded in 1969 and listed on the Brazilian Stock Exchange since 2004, Natura is the number one Brazilian cosmetics company. Natura currently has a market value of R$33.5 billion.