Deals

Natura to Buy Avon Products for About $2 Billion in Stock

  • Controlling holders of Natura to form a new public company
  • Combined company will have more than 6 million direct sellers

A Natura Cosmeticos store inside the Santos Dumont Airport in Rio de Janeiro.

Photographer: Dado Galdieri/Bloomberg
Lock
This article is for subscribers only.

Brazil’s Natura Cosmeticos SA agreed to buy rival Avon Products Inc. in an all-stock deal valued at about $2 billion, positioning it as a growing force in the booming global cosmetics and skincare industry.

Controlling shareholders of Natura, which bought the Body Shop retail chain in 2017, will form a new publicly traded holding company that will offer 0.3 share for every share of London-based Avon, according to a statementBloomberg Terminal. Holders of preferred Avon shares will get $530 million in cash assuming the deal closes in early 2020.