Avon Products Inc (NYSE:AVP) is being acquired by Brazilian cosmetics giant Natura & Co in all-stock deal, the companies announced after the bell Wednesday.
The announcement gave shares of the direct-to-consumer company another boost, a day after reports of an impending deal boosted the stock 9% the previous session.
On Thursday, the share price climbed another 3.2% to $3.60.
READ: Avon shares looking rosy on reports of Natura Cosmeticos acquisition
The combined cosmetic entity will be the fourth-largest pure-play beauty group in the world, boasting 6.3 million representatives, 3,200 stores and about 200 million consumers. The companies estimate a combined gross revenue of $10 billion annually.
After the deal closes, Natura shareholders will own approximately 76% of the combined company, with Avon shareholders owning the remaining 26%. Avon shareholders will receive 0.3 shares of Natura stock for every share of Avon stock.
"This combination is the start of an exciting new chapter in Avon's 130-year history,” Jan Zijderveld said. “Together with Natura, we will have broader access to innovation and a portfolio of products, a stronger e-commerce and digital platform, and improved data and tools for representatives to drive growth and enhance value for shareholders."
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