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

May 22, 2019, 8:42 PMUpdated: May 23, 2019, 3:04 PM

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 statement. Holders of preferred Avon shares will get $530 million in cash assuming the deal closes in early 2020.

Including debt, the transaction is valued at $3.7 billion, the companies said. ...