Avon to use £140m proceeds towards enhancing capital structure
Avon Products has sold natural skin care brand Liz Earle to Walgreens Boots Alliance for £140m in an all-cash transaction.
Avon revealed it aims to use the sale proceeds to enhance its capital structure, putting the money towards its anticipated redemption of $250m due March 2016.
Avon Chief Executive Officer Sheri McCoy said: “Avon remains committed to our strategic priorities, and we are focused on promoting our own skin care and broader beauty portfolio. It is important to ensure all areas of the business are well-positioned to deliver near-term contributions as well as long-term opportunity. This transaction allows Avon to realise immediate benefits while continuing to strengthen our balance sheet. Liz Earle is the perfect fit for Walgreens Boots Alliance where it already has a strong presence in its retail stores.”
Having acquired Liz Earle in March 2010, the UK-based natural skin care brand represented roughly 1% of Avon’s consolidated revenue and adjusted operating profit in 2014, or approximately 3% of its Europe, Middle East & Africa reporting segment’s revenue and adjusted operating profit.