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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Avon Products Inc | NYSE:AVP | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 5.60 | 0 | 01:00:00 |
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1. |
Why is Avon combining with Natura &Co? How does this fit into our strategy?
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The combination of Avon and Natura &Co will create a leading direct-to-consumer global beauty company that leverages each of Avon’s and Natura &Co’s
complementary strengths and purpose.
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Together, we will build a best-in-class global and leading relationship-selling business through over 6.3 million Consultants and Representatives in 100 countries,
with the ability to reach over 200 million consumers worldwide.
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Importantly, the combined company will have a diverse portfolio of complementary products and will benefit from a strengthened presence in core markets in Brazil and
Latin America and an expanded platform for growth in Europe, the Middle East and Africa (EMEA) and Asia Pacific.
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Importantly, Natura &Co is an excellent cultural fit with Avon. Both companies have strong track records of positive social and community engagement, in
particular a commitment to sustainability, and the empowerment of women. Together, we will be able to support and advance these values.
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2. |
Who is Natura &Co?
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Natura &Co is a Brazil-based market leading beauty company with a strong portfolio of products in fragrance, skin care, cosmetics, and gifting, among others.
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It also owns and operates The Body Shop and Aesop retail stores around the world.
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Importantly, Natura &Co shares our commitment to sustainability and doing right by our people and our communities, including a focus on opportunities for
Representatives.
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3. |
What does this announcement mean for me? What can we expect between now and closing?
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This announcement is just the first step. Until the transaction is completed, which we expect to occur in early 2020, it will be business as usual at Avon.
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Avon and Natura &Co will continue to operate and compete as independent companies; we cannot begin integrating our two companies until the transaction is closed.
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Our Avon team has built a strong foundation that the combined company will continue to build upon to grow over the long-term.
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It is still early, and many details have yet to be worked out. During the integration planning process, we will work on how to bring our companies together and
capitalize on the strengths and talent across each organization.
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We are committed to keeping you informed, and we will provide additional details as decisions are made.
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4. |
Does this impact our commitment to our ‘Open up Avon’ strategy? Is this still a priority?
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Over the past year, we have worked with focus and urgency on our new strategy, and today’s announcement is a testament to the effectiveness of these efforts and to
their go-forward potential.
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This combination will accelerate the delivery of our ‘Open Up’ strategy.
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Importantly, until the transaction closes, we will continue to operate and compete as a separate company and it is business as usual.
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5. |
Should Avon employees expect any changes to benefits and compensation?
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Until the transaction closes, we will continue to operate and compete as a separate company, and it is business as usual, including with respect to compensation and
benefits.
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It is still early in the process, and additional details regarding salaries and benefits as part of the combined company will be worked out as part of our
integration planning.
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6. |
Do you anticipate any layoffs following the transaction?
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This transaction is about an exciting future. Our businesses are highly complementary and there are strong teams at both companies.
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Overall, we expect there will be exciting opportunities for employees as part of a larger organization with multiple brands, channels, and a global footprint.
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In the course of the integration-planning work, decisions will be made concerning organizational structure and design for the combined company, and we will continue
to communicate with you throughout that process.
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Until the transaction is completed, we will continue to operate and compete as separate companies, and it will be business as usual at Avon.
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7. |
Where will the combined company be headquartered and who will lead it?
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The Board of the combined company will consist of 13 members, 10 of whom will be designated by Natura &Co and three of whom will be designated by Avon.
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Importantly, the combined company will bring together the significant strengths and quality of the workforce across both companies.
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Beyond that, it is still early in the process, and there are many decisions that have yet to be made.
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8. |
What will be the name of the combined company? Where will the combined company be listed?
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As part of this transaction, a new Brazilian holding company has been created.
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Upon closing, the new holding company´s common stock will be listed on BM&F Bovespa (B3) (the Brazilian Stock Exchange) and it will also have ADRs listed on the
NYSE (New York Stock Exchange).
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9. |
How will the integration process of Avon and Natura &Co be managed?
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Over the coming months, we expect to build an integration planning team which will work to address how post-close we can best bring our companies together and
capitalize on the strengths and talent across each organization.
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We will keep you informed of any important developments as we move through this process.
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10. |
What happens to the Avon stock that I own?
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Under the terms of the agreement, a new Brazilian holding company has been be created.
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Avon shareholders will receive 0.300 of, at their election, the Natura Holding shares or ADSs for each share of Avon common stock they own, which reflects a premium
of approximately 28% to Avon’s share price as of March 21, 2019.
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This represents a 24% total (economic) ownership of the combined company.
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As shareholders, you will also have the opportunity to benefit from the upside potential of the combined company.
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11. |
What will happen to my options?
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At the closing of the transaction, outstanding restricted stock units will be converted to awards in the new holding company stock, and the same terms and conditions
are expected to continue to apply, including vesting terms.
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Stock options will be cashed out and additional details will be forthcoming.
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12. |
Will Natura &Co keep current Avon offices open? Will I be asked to relocate?
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We anticipate that being a part of a larger organization will present exciting opportunities.
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It is still early in the process, and there are many decisions that have yet to be made.
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We will provide more information as we continue to work through details.
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The combined company will have an enhanced presence in key geographies such as Brazil and Latin America.
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13. |
How soon can Avon employees interact with the Natura &Co employees?
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You should not engage with Natura &Co employees before closing, unless a member of Avon’s
executive leadership team asks you to do so in connection with the integration-planning work.
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Until the transaction is completed, we will continue to act and compete as completely independent companies.
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14. |
How will the transaction affect relationships with suppliers / vendors / partners?
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Until the transaction is completed, this announcement will have no impact on our suppliers, vendors or partners.
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We will honor all contracts in place.
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We do not expect this transaction to impact Avon’s day-to-day business operations or engagement with our suppliers, vendors or partners.
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15. |
How will the transaction affect our Representatives?
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This combination is great news for our Representatives.
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They will benefit from the combined company’s relationship-selling expertise, as well as being part of a larger, broadly international organization that has the
ability to provide a more advanced relationship selling platform, better service infrastructure and combined product innovation and product portfolio.
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Our focus remains on helping our Representatives succeed and ensuring that they have the freedom to earn and learn on their own terms and in their own way.
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16. |
How long do you expect the regulatory review process will take and when do you expect the transaction to close?
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We expect the transaction will close in early 2020.
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Prior to that, we will need to obtain the necessary regulatory and shareholder approvals, as well as satisfy other customary closing conditions.
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Until that time, Avon and Natura &Co will continue to operate and compete as separate entities.
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17.
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What do I do if I’m asked about the transaction?
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As always, it is important that we speak with one voice.
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Do not communicate with media beyond the dissemination of the press release and forward all inquiries to the Global Communications team.
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Consistent with Avon’s media policy, please forward any calls, texts or e-mails from the media or investors to Amy Greene at 845.369.2472 / 3435-2472 or
amy.greene@avon.com, who is authorized to respond on the Company’s behalf.
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18. |
Where can employees obtain additional information?
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The press release and infographic we issued today are available on our website.
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As always, we will be sure to communicate important updates, as appropriate.
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If you have additional questions, please don’t hesitate to reach out to your manager.
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