Shares of Avon Products Inc. (NYSE: AVP) are continuing their rally from a day ago when the company announced its acquisition by Brazilian cosmetics firm Natura & Co. The stock was up 7% in morning hours on Thursday. It had climbed as much as 12% earlier in the day.
On Wednesday, Natura announced it was acquiring Avon in an all-stock transaction. The offer of 0.30 Natura Holding shares for each share of Avon common stock values Avon at more than $2 billion. The transaction is expected to be completed in early 2020 and will create the fourth-largest beauty company in the world.
A new Brazilian holding company, Natura Holding S.A., has been created for the deal. Natura shareholders will own approx. 76% of the combined company while Avon shareholders will own around 24%. The combined company is expected to have annual gross revenues of over $10 billion and a geographic presence spanning 100 countries.
Natura expects the deal will generate annual synergies in the range of $150 million to $250 million which will be reinvested in R&D initiatives and expansion efforts.
Earlier this month, Avon reported its first quarter results in which total revenue declined 15% year-over-year to $1.18 billion. The company reported a wider net loss of $32.7 million, or $0.09 per share, versus the prior-year period.
Avon’s stock has gained 150% year-to-date and looking at the past one year, shares have climbed 97%.
Netflix (NASDAQ: NFLX) has for long been the undisputed king of the streaming space. The streaming industry is seeing massive growth with several new players entering the field. It also
The demand for services that involve minimal human interaction is on the rise as people continue to practice social distancing. Fastenal Co. (NASDAQ: FAST), a market-leading supplier of vending machines,
HEXO Corp. (NYSE: HEXO) reported its third-quarter 2021 earnings results today. Net revenue rose 2% year-over-year to CAD22.6 million. Net loss narrowed to CAD20.7 million from a loss of CAD19.5