Neville Prior

Avon Announces Divestiture of Liz Earle

Neville Prior  9 July 2015 08:30:09 PM
Image:Avon Announces Divestiture of Liz Earle
Avon Products, Inc. announced today that it has divested Liz Earle, its wholly-owned, UK-based natural skincare brand. Walgreens Boots Alliance, the global pharmacy-led, health and wellbeing enterprise, acquired the Liz Earle business for £140 million in an all-cash transaction.

"Avon remains committed to our strategic priorities, and we are focused on promoting our own skincare 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 realize immediate benefits while continuing to strengthen our balance sheet," said Avon Chief Executive Officer Sheri McCoy. "Liz Earle is the perfect fit for Walgreens Boots Alliance where it already has a strong presence in its retail stores."

Avon acquired Liz Earle in March 2010 and has since managed the brand as a standalone business from the core direct-selling business. In 2014, Liz Earle represented approximately 1% of the company's consolidated revenue and adjusted operating profit, or approximately 3% of its Europe, Middle East & Africa reporting segment's revenue and adjusted operating profit. Proceeds from the transaction will be used for the company's anticipated redemption of $250 million, 2.375% Notes due March 2016. This is a significant step forward in enhancing the company's capital structure to advance its strategic priorities.
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