Categories Retail

Avon’s stock rallies on Natura deal

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%.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top