Deals
Avon to Separate Its North America Business in Cerberus Deal
- Private-equity firm to invest $605 million in cosmetics giant
- Cerberus will own 80% of North American unit after transaction
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Avon Products Inc. will split off its North American business as part of a $605 million deal with private-equity firm Cerberus Capital Management, letting the beleaguered cosmetics giant focus on its more promising international business.
Cerberus will acquire an 80 percent interest in the North American division for $170 million, according to a statement Thursday. That business, which has struggled to attract new sales representatives, has been a drag on the company. Operating income in the unit has fallen four years in a row, including a 14 percent decline last year.