In Japan the Avon Lady looks more like an investment banker. Here’s the story…
Leading beauty company Avon Products Inc. (AVP – Analyst Report) announced the sale of its 74.67% stake in Avon Japan to a subsidiary of TPG Capital, a private investment firm. The deal has been finalized for a total cash payment of 7.3 billion yen, or approximately $90 million.
TPG Capital is also offering 74 yen per share to shareholders under the terms of the tender offer launched for the remaining 25.33% of Avon Japan. This happens to be the same price at which Avon agreed to sell its shares.
This move forms a part of Avon Products’ strategy of exiting from low profit generating arenas and concentrating on high growth potential avenues.
Avon Japan, which was publicly traded on the JASDAQ market of the Osaka Securities Exchange, was unsuccessful in contributing much to the revenues of the parent company and accounted for less than 2% of the total company sales figure.
Source: Zacks
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