Brazil’s Natura announced on Wednesday, May 22, it had reached an agreement to buy rival Avon Products via a share swap, creating the world’s fourth-largest beauty company with a redoubled focus on direct sales.
Under the terms of the deal, Natura will hold 76% of the combined business with over US$10 billion in annual revenue, according to a statement from the Brazilian cosmetics firm.
After Natura pushed into high-end retail shops with the acquisitions of Aesop in 2013 and The Body Shop in 2017, the takeover of its biggest rival in direct sales is a renewed bet on the company’s core business of door-to-door distribution.
Brazil is Avon’s biggest market, making up nearly a quarter of sales, but its business there has suffered in recent years due to a weak economy and stiff competition from Natura.
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