Reports suggest that UK based cosmetic business group Avon will be purchased by Brazilian cosmetics company Natura. Avon Products, Inc, commonly known as Avon, was founded by David H. McConnell in 1886.
Cosmetics pioneer, Natura already owns Aesop and the Body Shop and is considered as one of the world’s leading companies in cosmetics, toiletries and perfumes. Natura purchased Body Shop from French cosmetics company L’Oreal in a deal worth 1bn euros (£880m). The combined deal will create about 3200 stores worldwide in about 100 countries. According to the report, Natura shareholders will hold about 76% which allegedly draw an annual revenue of over $10bn.
The previous report suggests Avon’s business was not running well in the past. Allegedly, Avon had been struggling to extend and develop its global business up to modern standards over the past few years. In 2016 the company had also moved its headquarters from New York to UK; this move had led Avon to sell its US operations to Cerberus, an investment fund.
According to reports, Avon already has around 2.2 million direct marketing consultants in Brazil. Natura also reports having Avon representatives in Brazil that sell Natura products as well. In order to become the world’s top leading brands in cosmetics, Natura seems to leave no stone unturned. Natura is “pursuing the goal of becoming a global brand,” confirms analysts at Brasil Plural.