Natura&Co and Avon Merge

Brazil-based Natura&Co acquires Avon Products in stock-for-stock transaction.

Following the acquisition, Natura Holding A.Ş. was established in Brazil. Based on a fixed conversion ratio of 0.300 for Avon shares, Natura Holding will hold 76 percent of the newly created company's shares, while the remaining 24 percent will be held by Avon shareholders. In a statement from Natura&Co, it was stated that the merger is expected to generate annual financial returns between USD 150 million and USD 250 million. A significant portion of the revenue will be used for developing digital capabilities, research and development and brand investments, and expanding the group's geographic footprint. Luiz Seabra, one of Natura's founders, made the following remarks: "We have always regarded Avon with respect and admiration. Natura is a brand passionate about beauty and human relationships. Today, direct communication with customers has become a very important strength. Direct sales is one of the most established social networks. With the increase in technology and globalization, it has become the key to building meaningful relationships with customers. The direct sales model has evolved into the concept of social selling today, and through the power of digital, it has gone beyond merely providing products and advice, enabling women to empower themselves, achieve financial independence and express themselves as they wish. We also believe that by combining our strengths with Avon and transferring our social, environmental and economic values to a continuously growing network, we will create a powerful force for good," he said.

Avon CEO Jan Zijderveld: "This merger marks the beginning of a completely new era in Avon's 130-year history. We sincerely believe that this merger is an indication of our company's growth strategy and will strengthen our strategy and our development in digital channels.

In recent years, to increase Avon's competitiveness, we have dedicated ourselves to simplifying our operations and modernizing our brand through digitalization. Together with Natura, through new product development and product diversity, we will have a stronger e-commerce and digital platform, providing our representatives with enhanced data and tools, making us more valuable to our partners. Both Avon and Natura are mission-driven companies, and this merger will enable Avon's global strength and profit opportunities to benefit millions of our representatives with improved service," he said. Orkun Gül, General Manager of Avon Turkey, also made the following assessment regarding the merger: "This global development is very exciting for Avon Turkey. We have been working proudly with our representatives in Turkey for over 20 years. We have always been proud to be part of Avon. We are excited about the benefits, opportunities and possibilities that the merger with Natura will bring to both Avon Turkey and our representatives." Source: Yeni Şafak