NEW YORK, May 14, 2012 /PRNewswire/ -- Coty Inc., a leading
global beauty company, today announced that it has sent the
following letter to the Avon Products, Inc. (NYSE:AVP) Board of
Directors:
May 14, 2012
Board of Directors
Avon Products, Inc.
1345 Avenue of the Americas
New York, NY 10105
Dear Members of the Board:
Since we first reached out to Avon Products, Inc. at the
beginning of March with our acquisition proposal, it has been our
sincere hope that we would be able to explore together a friendly
combination of our two companies that would provide premium value
to Avon's stockholders and benefit
its customers, representatives and associates around the
world.
While we have waited patiently, Avon's Board has now had more than two months
to consider whether to engage in discussions and permit us to
conduct due diligence. We have not asked the Board to accept
our proposed purchase price or to agree to sell the Company, but
only to sit down and discuss whether there might be a common basis
for pursuing a transaction that we believe would be beneficial to
all parties.
Last week, we offered Avon's
Board an increase in the value of our proposal, additional detail
on the key areas of focus for our diligence, a willingness to sign
a standstill agreement and one last opportunity to engage in
discussions. We believe that we provided the Board with ample time
to respond, particularly since it has already had months to
consider our initial request. Yesterday, we received a two
sentence email indicating, without explanation, that Avon's Board would need another week to
consider our request. Since receiving your email, we have
reached out to Avon's Board,
management and advisors to understand why additional time is
needed, but we have received no explanation. I find it
remarkable that since we made our revised proposal, and despite
repeated requests over the last 24 hours, no one from Avon's Board or management has been willing to
speak with us, including Fred
Hassan, Andrea Jung and
Sheri McCoy.
This continued delay and unwillingness to engage in discussions
is disappointing and certainly not a constructive way to proceed.
We believe that we provided a compelling and well-financed proposal
for a business facing multiple challenges. As you know, our
proposal included equity commitments in excess of $5.8 billion from Joh. A. Benckiser, BDT Capital
Partners and certain of its limited partners, and Berkshire
Hathaway Inc. Debt financing was to be provided by JPMorgan
Securities.
We received encouragement from many of your shareholders,
research analysts and others in the financial community.
Despite this support, your total lack of engagement with us leads
us to believe that you remain reluctant to explore a friendly,
negotiated combination on a reasonable timetable. Two months
is enough. Consequently, as our deadline to begin discussions
expired today, our proposal is withdrawn. It is time for Coty
Inc. to move on and pursue other opportunities.
While we are disappointed, we wish you success in pursuing your
standalone turnaround strategy.
With best regards,
Bart Becht
About Coty Inc.
Coty was created in Paris
in 1904 by Francois Coty, who is
credited with founding the modern fragrance industry.
Today Coty Inc. is a recognized leader in global beauty with annual
net sales of $4.5 billion. Driven by
an entrepreneurial spirit, passion, innovation and creativity, Coty
Inc. has developed an unrivaled portfolio of notable brands and
delivers its innovative products to consumers in 135 markets
worldwide.
The Coty Prestige brand portfolio is distributed in
prestige and ultra-prestige stores and includes Balenciaga,
Bottega Veneta, Calvin Klein,
Cerruti, Chloe, Chopard, Davidoff, Jennifer
Lopez, Jil Sander, JOOP!,
Karl Lagerfeld, Kenneth Cole, Gwen
Stefani, Lancaster,
Marc Jacobs, Nikos, philosophy,
Roberto Cavalli, Sarah Jessica Parker, Truth or Dare by Madonna,
Vera Wang, Vivienne Westwood and Wolfgang Joop.
The Coty Beauty brand portfolio is more widely
distributed and includes adidas, ASTOR, Beyonce Knowles, Celine
Dion, David and Victoria
Beckham, Elite Models, Esprit, Exclamation, Faith Hill, GUESS?, Halle Berry, Heidi
Klum, Jovan, Kate Moss,
Kylie Minogue, Lady Gaga,
Manhattan, Manhattan Clearface,
Miss Sporty, Nautica, N.Y.C. New York Color, Nicole by OPI, OPI,
Pierre Cardin(1), Playboy, Rimmel,
Sally Hansen, Stetson, Tim McGraw, TJoy and Tonino Lamborghini.
Coty and Puig S.L. have a strategic
partnership for the distribution of the perfume lines of
Antonio Banderas, Carolina Herrera, Nina
Ricci, Paco Rabanne, Prada, Shakira and Valentino
in the United States and
Canada.
For additional information about Coty Inc., please visit
www.coty.com.
(1) Not available in North
America
Additional Information
This communication does not constitute an offer to buy or
solicitation of an offer to sell any securities. No tender
offer for the shares of Avon Products, Inc. has been commenced at
this time and Coty Inc. has not indicated any intent to do so.
SOURCE Coty Inc.