NEW YORK, July 9, 2015 /PRNewswire/ -- Avon Products, Inc. (NYSE :AVP ) 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.
About Avon Products, Inc.
Avon is the company that for more than 125 years has stood for beauty, innovation, optimism and, above all, for women. Avon, with nearly $9 billion in annual revenue, has products that are sold through 6 million active independent Avon Sales Representatives worldwide. Avon products include color cosmetics, skincare, fragrance, and fashion and home, featuring such well-recognized brand names as Avon Color, ANEW, Avon Care, Skin-So-Soft, and Advance Techniques. Learn more about Avon and its products at www.avoncompany.com.
Statements in this release that are not historical facts may be forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are detailed from time to time in reports filed by Avon Products, Inc. with the Securities and Exchange Commission, including Forms 8-K, 10-Q, and 10-K. Some forward-looking statements in this release include and concern our strategic priorities, product category performance, capital structure and liquidity, use of proceeds, and debt obligations. These forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, levels of activity, performance or achievement of Avon to be materially different from any future results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to improve our financial and operational performance, the possibility of business disruption, competitive uncertainties and general economic and business conditions in our markets, including fluctuations in foreign currency exchange rates. Any forward-looking statements speak only as of the date they are made. The Company does not undertake to update any such forward-looking statements.
SOURCE Avon Products, Inc.