In March Natura confirmed that it is in talk to buy Avon Products and it seems that in the past few weeks company executives have been working hard to get the financing lined up.
A Bloomberg report, citing people with knowledge of the plan, said that at least financing has been secured with at least three banks to finance the potential acquisition.
Three banks line up financing
The report confirmed that Banco Santander SA, Itau Unibanco Holding SA and Banco Bradesco have all offered to provide funds that could help to secure the deal.
Although no terms and conditions have been revealed, industry experts say that if Brazil-based Natura were to secure the acquisition of Avon Products, it could put the value of the business in excess of $2 billion.
Although representatives of Natura have declined to comment on the financing, the offers from the banks are not definitive as Natura has still to finalize its acquisition plan.
Natura expands globally
In 2017 Natura made the bold step of acquiring The Body Shop, a deal that gave it a global footing thanks to the extensive international retail footprint of the business.
After confirming that Natura was seriously considering acquiring the Avon Products business, the following month Natura’s chief financial office, Jose Filippo, was quoted as saying that the acquisition of Avon Products “may make sense”.
Avon Products covers Europe, North and South Africa, India, China and Southeast Asia, but it’s mainstay business is in Latin America, where it is particularly dominant in the Brazil market.
Natura has continued to grow in recent years, with the company’s most recent quarterly results showing sales up by 8%, with sales also up in its mainstay Brazil market, despite very tough market conditions.
