NEW YORK, July 9, 2015 /PRNewswire/ -- Avon Products,
Inc. (NYSE: AVP) announced today that it has divested Liz Earle,
its wholly-owned, UK-based natural skincare brand. Walgreens Boots
Alliance, the global pharmacy-led, health and wellbeing enterprise,
acquired the Liz Earle business for £140 million in an all-cash
transaction.
"Avon remains committed to our
strategic priorities, and we are focused on promoting our own
skincare and broader beauty portfolio. It is important to ensure
all areas of the business are well-positioned to deliver near-term
contributions as well as long-term opportunity. This transaction
allows Avon to realize immediate
benefits while continuing to strengthen our balance sheet," said
Avon Chief Executive Officer
Sheri McCoy. "Liz Earle is the
perfect fit for Walgreens Boots Alliance where it already has a
strong presence in its retail stores."
Avon acquired Liz Earle in
March 2010 and has since managed the
brand as a standalone business from the core direct-selling
business. In 2014, Liz Earle represented approximately 1% of the
company's consolidated revenue and adjusted operating profit, or
approximately 3% of its Europe,
Middle East & Africa reporting segment's revenue and
adjusted operating profit. Proceeds from the transaction will be
used for the company's anticipated redemption of $250 million, 2.375% Notes due March 2016. This is a significant step forward in
enhancing the company's capital structure to advance its strategic
priorities.
About Avon Products, Inc.
Avon is the company that for more than 125
years has stood for beauty, innovation, optimism and, above all,
for women. Avon, with nearly
$9 billion in annual revenue, has
products that are sold through 6 million active independent Avon
Sales Representatives worldwide. Avon products include color cosmetics,
skincare, fragrance, and fashion and home, featuring such
well-recognized brand names as Avon Color, ANEW, Avon Care,
Skin-So-Soft, and Advance Techniques. Learn more about Avon and its products at
www.avoncompany.com.
Forward-Looking Statements
Statements in this release
that are not historical facts may be forward-looking statements
that involve risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties are
detailed from time to time in reports filed by Avon Products, Inc.
with the Securities and Exchange Commission, including Forms 8-K,
10-Q, and 10-K. Some forward-looking statements in this release
include and concern our strategic priorities, product category
performance, capital structure and liquidity, use of proceeds, and
debt obligations. These forward-looking statements involve risks,
uncertainties and other factors, which may cause the actual
results, levels of activity, performance or achievement of
Avon to be materially different
from any future results expressed or implied by such
forward-looking statements. These risks and uncertainties include,
but are not limited to, our ability to improve our financial and
operational performance, the possibility of business disruption,
competitive uncertainties and general economic and business
conditions in our markets, including fluctuations in foreign
currency exchange rates. Any forward-looking statements speak
only as of the date they are made. The Company does not undertake
to update any such forward-looking statements.
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SOURCE Avon Products, Inc.