Avon rejects Coty’s $10 billion takeover offer
02 Apr 2012
US beauty products maker Avon Products Inc today said it had rejected a $10-billion unsolicited takeover offer from Coty Inc, the world's largest fragrance company.
Coty, known for creating fragrances for celebrities like David and Victoria Beckham, Beyonce Knowles and Jennifer Lopez, offered $23.25 per share, a 20-per cent premium to Avon's closing price of $19.36 on 30 March.
The Paris and New York City-headquartered Coty said it today went public with the offer after it was unsuccessful in engaging Avon in buyout talks. It said that it had offered $22.25 per share in early March, but had no plans of pursuing a hostile takeover.
The over a century-old fragrance manufacturer that also produces cosmetics and other health and beauty aids, said that the merged company would be called Avon-Coty.
Coty develops and manufactures beauty care products that include fragrances, toiletries, and colour cosmetics, and skin care, sun care, and personal care products.
Its Jennifer Lopez perfume has raked in $1 billion in sales since being introduced in 2002.
With annual turnover of around $4 billion, privately-owned Coty is trying to buy a company, whose turnover is more than double its own. Avon had revenues of $11.2 billion in 2011.
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