translated from Spanish: Brazilian cosmetics company Natura bought Avon for more than $3 billion

Brazilian cosmetics company Natura, owner of The Body Shop, has soared more than 6% in the stock market after the purchase of the US Avon through a stock exchange that valued the century-old direct cos company $3.7 billion (3.320 million euros). Following the announcement of the closure of this operation, which will give rise to the sector’s fourth largest global firm, with an approximate value of $11 billion (9.870 million euros), Natura’s securities were boosted by 6.1% just an hour and a half before the close of the in Sao Pualo,Brazil. As reported by the new company, called Natura Holding, the current president of the company, Roberto Marques, will also act as CEO of the group, which has been reorganized into four main businesses: Natura Latin America, Avon, The Body Shop and Aesop.De the activity in Latin America will be in charge of the current CEO of Natura, Joao Paulo Ferreira, while the Avon business will be the vice president and general manager in Central Europe of the Us company, Angela Cretu. , the current CEO of The Body Shop, David Boyton, will continue to hold the same position, as will the CEO and one of Aesop’s founders, Michael O’Keeffe. Under the terms of the agreement reached last May between the two companies, the current owners of Brazilian cosmetics have taken control of 76% of the new company, while Avon shareholders will own the remaining 24%. In this regard, Natura estimated that the merger would result in annual synergies of between $150 million and $250 million (134 million and 224 million euros), of which a share will be reinvested to improve the company’s digital and social sales capabilities , as well as research and development and branding initiatives to further expand the geographical presence of the company. The American group Coty tried unsuccessfully to buy Avon in 2012 for $10.7 billion (9.601 million euros), although it eventually withdrawn its offer in the face of Avon’s “continued delays and unwillingness to reach an agreement.”

Original source in Spanish