Shares of Avon Products Inc (NYSE:AVP) got a pop of color Wednesday morning on news that the company is being acquired by Brazilian company Natura Cosméticos, according to a report from the Wall Street Journal.
Both company’s boards have approved the deal, after which Natura would own about 76% of the combined entity, with the rest held by Avon shareholders. The sale is expected to be announced Wednesday.
Investors were blushing as the stock gained nearly 15% in pre-market trading.
A potential sale has been rumored for months as the cosmetics maker – long known for its door-to-door sales techniques – has struggled to adapt to an online marketplace. The company cut 2,300 jobs in January, according to the Financial Times.
In March, the London-headquartered company confirmed that it was in talks with Natura, which also owns British cosmetics company The Body Shop and Australian skincare brand Aesop.
Avon’s North American business also changed hands recently. LG Household & Health, a Korean consumer-goods company, bought Avon’s North American business in April from private-equity firm Cerberus Capital for $125 million, WSJ reported.
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