Body Shop owner completes takeover of Avon | Fin24
 
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Body Shop owner completes takeover of Avon

Jan 09 2020 12:43
Sibongile Khumalo

Avon, a global direct-selling cosmetics company, is now a subsidiary of Natura & Co., following the completion of a recent acquisition by the Brazilian beauty firm for an undisclosed amount.

The transaction creates the world’s fourth-largest pure-play beauty company, according to a statement issued by the companies.

Natura owns brands such as Aesop and The Body Shop, which it acquired in 2017.

Avon has a strong presence in the South African market, as does The Body Shop.

“The combination of Avon, Natura, The Body Shop and Aesop significantly amplifies the reach of a multi-channel, multi-brand group that will be an unparalleled leader in the Direct-to-Consumer space, bringing beauty to over 200 million consumers across the world,” said the statement.

Founded 50 years ago, Natura operates in Argentina, Chile, Colombia, France, Mexico, Peru and the United States. The company trades on the B3 stock exchange in Sao Paulo and says the combined companies will have combined annual gross revenues of over $10bn, approximately R141bn.

Avon sells a range of beauty products through a network of micro-entrepreneurs in over 100 countries, including South Africa.

According to Netwerk24, the Direct Sellers Association (DSA) in South Africa, which represents 31 companies - including Avon, Herbalife,  AMC Cookware, Amway, Annique, Avroy Shlain, SH'ZEN and Tupperware - reported that total South African sales in 2018 amounted to R12.8bn - 5% less than in the previous year.

The number of full-time sellers declined by 23% last year, with more than 230 000 people leaving the industry.

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