Coty proposes to acquire Avon
NEW YORK — Coty announced on Monday that it has submitted a nonbinding proposal to acquire Avon in a deal valued at about $10 billion; however, Avon has rejected the unsolicited bid.
Coty has submitted a nonbinding proposal to acquire Avon for $23.25 per share in cash. The proposal, valued at approximately $10 billion, represents a substantial premium of 27% over the three-month, volume-weighted average price for Avon shares, Coty stated.
Coty stated that it has no intention of pursuing a hostile takeover but is making its proposal public in order to inform Avon’s shareholders of what it believes is “significant value” in a transaction.
“Our objective is to engage in discussions with Avon and conduct due diligence so that we and Avon can together determine if there is a basis for a transaction. We believe Avon’s shareholders would want their board to explore with us the benefits to shareholders of a transaction," stated Bart Becht, chairman of the board of directors of Coty.
Coty stated the combination would create a “new strong” company in beauty to be called "Avon-Coty." The combined company would benefit from complementary category strengths, Coty stated. Coty has a solid foothold in fragrances and nail products, while Avon has more core strength in color and skin and body products. Coty’s approach to innovation, branding and execution would be used and targeted to deliver innovative products across all beauty categories for "Avon-Coty,” Coty stated.
Furthermore, Avon has a strong presence in emerging markets, with more than 68% of its revenues coming from these markets. Many of the beauty categories in these markets are dominated by "door to door" distribution. Coty stated that, while many of Coty’s brands already have good levels of awareness in many of these markets, they are not widely available for sale at this point in time because of lack of Coty infrastructure. Distribution of Coty mass beauty brands via Avon’s "door to door" distribution channel would, therefore, create new and attractive growth and earnings opportunities for "Avon-Coty" and its 6.4 million account representatives.
Avon, however, stated in response that, “Coty’s indication of interest, which offers Avon shareholders a 20% premium over the company’s closing share price on March 30, 2012, does not reflect the fundamental value of Avon and its global beauty care franchise. Indeed, the indication of interest represents a multiple of only 1.1 times Avon’s net revenue for the fiscal year ended Dec. 31, 2011, and 8.7 times 2011 EBITDA. This is significantly below multiples that the board of directors believes an iconic consumer company is worth in a change of control transaction.”
Avon also stressed that it is committed to hiring a new CEO and that with a new CEO there is a “greater opportunity to improve shareholder value in excess of Coty’s conditional indication of interest.”
Abbe Labs offering End-Zit skin care regimen for acne control
FARMINGDALE, N.Y. — Abbe Labs has announced that it now is offering the End-Zit acne treatment system, which is comprised of five products that target problem skin and prevent future breakouts.
The line includes a cleanser, toner, moisturizer, mask and acne drying lotion.
The End-Zit blemish control cleanser is a non-oily cleansing wash to remove excess oils, grime, and impurities from the skin. It promises to remoisturize skin with pure glycerin and absorbs excess oil with titanium dioxide. Citric acid helps maintain natural skin pH, while glycereth-7-coconate refats the skin for a healthy complexion. It contains salicylic acid and a beta-hydroxy acid exfolliant to help purify and detoxify the skin.
End-Zit blemish control toner contains plant extracts and alpha-hydroxy acids to gently exfoliate, soothe and rejuvenate skin. Witch hazel (hamamelis) has been used for centuries as a mild astringent and skin conditioner. Kola nut extract is a natural anti-inflammatory and anti-irritant. Chamomile extract is known as a calming, soothing herb. A complex of alpha-hydroxy acids (glycolic, lactic, malic, and tartaric) complete the activity of the toner. Salicylic acid, a gentle beta-hydroxy acid, aids the exfoliation process, while purifying and detoxifying the skin.
End-Zit blemish control moisturizer is an all-natural, paraben-free, noncomadogenic oil-free moisturizer. It is composed of an alpha/beta hydroxy acid complex, (glycolic, lactic, mlic, tartaric, and citric acids), botanicals and red marine algae, which is a vitamin and mineral rich seaweed. It also contains the antioxidants vitamin C and Japanese green tea extract.
End-Zit acne control mask is a sulfur-based mask specially designed for oily, problem skin and clogged pores on the face and body. In addition to reducing the appearance of acne on the face, End-Zit acne control mask is an ideal treatment for problem areas on the back, chest and shoulders. This mask also can be used as a nighttime spot treatment on the face. It contains red marine algae, a type of seaweed found only off the coast of Maui.
End-Zit acne control drying lotion (light/medium tint, medium/dark tint, sun bronze tint and untinted) is intended for use on blemishes only. This formulation is designed to dry and aid in the elimination of pimples and may be used under makeup or alone.
Vichy develops new skin-conditioning body oil with SPF 30
NEW YORK — French beauty brand Vichy will launch in April its new Capital Soleil SPF 30 luxurious protective oil.
The body oil, to be applied to the body 15 minutes before sun exposure, offers high broad-spectrum UVA/UVB protection with a sun-kissed glow upon application.
The formula is infused with a cocktail of natural white grapeseed oil and vitamin E to help protect skin from skin-aging free radicals. The oil has a waterless base and a patented gelling polymer that, according to the manufacturer, can help prevent moisture loss without preservatives, safeguarding the skin from allergic reactions and irritation.
The new Capital Soleil SPF 30 luxurious protective oil is priced at $28.50 and launches in April at select CVS/pharmacy, Duane Reade and Walgreens stores.