Avon Moving its Headquarters to the U.K.
March 14 2016 - 6:30PM
Dow Jones News
Avon Products Inc. said Monday that it would reduce its head
count by about 2,500 positions and move its corporate headquarters
to the United Kingdom.
The actions follow the beauty-product company's recent sale of
its North American operation to Cerberus Capital Management.
"With the recent completion of the sale," Avon Chief Executive
Sheri McCoy said, "our commercial operations are now fully outside
of the United States, allowing us to dramatically rethink our
operating model."
Avon plans to transition its corporate headquarters "over time"
to the U.K., where it has significant commercial operations. The
company also said it plans to locate core functions in Britain.
The company will maintain its current facilities in Suffern,
N.Y., and Rye, N.Y. It also will continue to be incorporated in New
York and trade on the New York Stock Exchange under the symbol
AVP.
Avon said the reduction in positions includes both filled and
unfilled positions. The revamp also will include changes at Avon's
commercial business, though specific details weren't provided.
"The actions we are taking today will bring our corporate and
commercial businesses closer together," said Ms. McCoy, who has
been attempting to turn the company around, in prepared remarks
Monday.
Avon said it expects to post first-quarter pretax charges of $60
million related to the moves.
The company is aiming to generate pretax savings of roughly $30
million this year, tied to a head count reduction of about 1,700,
and $20 million in 2016 related to the elimination of the open
positions. It also expects pretax savings of approximately $65
million to $70 million beginning in 2017.
At the start of March, Avon and Cerberus announced the closing
of their complex deal in which the private-equity firm agreed to
inject $435 million into Avon and carve out the North American
business into a separate company with another $170 million
investment. Avon said the North American business isn't affected by
the latest cost-cutting plans.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
March 14, 2016 18:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Avon Products (NYSE:AVP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Avon Products (NYSE:AVP)
Historical Stock Chart
From Jul 2023 to Jul 2024