{"id":67731,"date":"2015-12-20T03:46:48","date_gmt":"2015-12-20T08:46:48","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=67731"},"modified":"2015-12-20T03:46:48","modified_gmt":"2015-12-20T08:46:48","slug":"cerberus-taking-a-majority-stake-in-avon-n-american-unit-as-well-as-minority-stake-in-rest","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2015\/12\/20\/cerberus-taking-a-majority-stake-in-avon-n-american-unit-as-well-as-minority-stake-in-rest\/","title":{"rendered":"Cerberus taking a majority stake in Avon N. American unit as well as minority stake in rest"},"content":{"rendered":"
\"Avon<\/a>
Avon lipsticks (Photo from Avon’s official Twitter account<\/a>)<\/figcaption><\/figure>\n

NEW YORK \u2013 Private investment firm Cerberus Capital Management is taking a majority stake in Avon\u2019s North American division.<\/p>\n

The companies said that they believe the partnership will help to improve Avon\u2019s performance and boost shareholder value.<\/p>\n

Cerberus will get an 80.1 per cent interest in Avon North America in exchange for a $170 million equity investment. The North American unit will be separated from Avon Products Inc. into a privately-held company that will include the U.S., Canada and Puerto Rico. It will be managed by New York-based Cerberus.<\/p>\n

The new company will enter into a licensing agreement with Avon for the use of the Avon brand, the Avon product portfolio and other intellectual property. There will also be a transition services agreement to include IT and research and development.<\/p>\n

Pablo Munoz, current president of Avon North America, will leave the company, effective January 4. Cerberus will name a new CEO for the business.<\/p>\n

Cerberus will also make a $435 million investment for a minority stake in Avon Products Inc.<\/p>\n

Avon CEO Sheri McCoy said in a written statement that the New York-based company will focus resources on its top markets, adding that the investment from Cerberus will give it the financial flexibility needed to implement plans for its international business.<\/p>\n

Avon\u2019s board has approved the deal, which is expected to be completed in the spring. Avon will trim its board from 12 to 11 members.<\/p>\n

The beauty products company also announced that it is suspending its quarterly dividend, starting in 2016’s first quarter.<\/p>\n

Avon Products shares rose 4 cents to $4.13 in afternoon trading Thursday. Avon Products shares have fallen more than 55 per cent over the past year.<\/p>\n","protected":false},"excerpt":{"rendered":"

NEW YORK \u2013 Private investment firm Cerberus Capital Management is taking a majority stake in Avon\u2019s North American division. The …<\/p>\n","protected":false},"author":33,"featured_media":67732,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[1080],"class_list":["post-67731","post","type-post","status-publish","format-standard","has-post-thumbnail","category-fashion-and-beauty","tag-ap","mauthors-the-associated-press"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/67731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=67731"}],"version-history":[{"count":0,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/67731\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/67732"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=67731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=67731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=67731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}