Avon Reaches Truce With Activists, Avoiding Battle for Board
- Investor group had criticized Avon for making ‘fire sale’ deal
- Barington Capital and allies to help pick independent director
An Avon sales representative in New York.
Photographer: Ron Antonelli/BloombergThis article is for subscribers only.
Avon Products Inc., the cosmetics giant that cleaved itself into two parts earlier this year, reached a settlement with activist investors that will stave off a potential board fight.
Barington Capital Group and NuOrion Partners AG, which have criticized Avon’s management, agreed to back down in exchange for helping pick an independent director for the board, according to a statement Monday. The nominee will be chosen jointly with Cerberus Capital Management, Avon’s biggest backer. The activists also said they support Avon’s addition of former FedEx Corp. executive Cathy Ross to the board.