Avon’s North American business has been taken over by Cerberus Capital Management. The company has also agreed to invest in the parent, which is now valued at below $2 billion. Ever since Avon had rebuffed an unsolicited offer by Coty, which was said to be around the neighborhood of $10 billion, rumors of a potential takeover has been brewing.
Since their refusal in 2012, Avon has experienced years of consecutive decline concerning their gross profit and revenue, causing their stock to plummet and at least $8 billion sliced off its market value. It has been said that the primary cause of its troubles has been the North American business, which was deemed unprofitable. The transaction between Avon and Cerberus Capital Management is expected to close sometime in spring.
