Some big news today about Direct-Selling giant Avon. Looks like L’Oreal is poised to buy the company. Is a name change in the works? Ding Dong. L’Avon calling!
It’s been a beautiful morning for shareholders of U.S. perfume and cosmetics company Avon Products (AVP). A British newspaper reported today that French cosmetics company L’Oreal might be preparing a cash bid for Avon.
The Daily Mail reported that L’Oreal plans to buy the company for $44 a share, or $18.8 billion. Avon closed Monday at $33.16, meaning L’Oreal is willing to pay a 32.7% premium on Avon stock.
AVP stock jumped 10% in premarket trading after the news was released. But is the buyout rumor real, and what does it mean for consumers?
The buyout of Avon would diversify L’Oreal’s product line, which focuses primarily on beauty products such as hair coloring, makeup and styling products. While Avon does have its own beauty products, the company is also segmented into fashion and home divisions.
– Dan Mitchell, MLM Blog Correspondent –
