Avon Products rebuffed a $10.7 billion offer by Coty over three years ago and since then their business has been on the rocks. This week, Cerberus Capital Management agreed to take their North American business. The North American business has been at the heart of Avon’s problems, weighing down the rest of the company.
Sheri McCoy, the chief executive of Avon Products, explained that the Avon portfolio outside of North America represents 86% of their revenue in the last nine months.
As Ms. McCoy explained, “We believe that the separation of North America is the best way to ensure that both businesses have an unencumbered path to profitability and growth. This was a key principle as we considered alternatives.”
Learn more about Avon’s plans and what Cerberus has planned with their take-over.