P.M. BRIEFING : Avon to Sell Japanese Interest
- Share via
NEW YORK — Avon Products Inc., battling an unwanted takeover bid, said today it will sell its 60% stake in Avon Japan for $338 million in cash and use the proceeds to further reduce its debt.
The buyer, Friends of Freesia Co. of Tokyo, also has agreed to prepay $70 million in royalties and prepay another $42 million in royalties 18 months after the close of the transaction, Avon said.
Avon said it will receive 5% in royalties on all Avon products sold by Avon Japan for 18 months and 3% in royalties thereafter.
The door-to-door cosmetics company, facing a proxy battle launched by an investor group that includes a member of the Getty oil family, executives of cosmetics rival Mary Kay Cosmetics Inc. and the Fisher real estate family, has cut its $1.1-billion debt by about $500 million in the last year, a spokesman said.
Avon has maintained a desire to remain independent in the face of several takeover overtures during the last several months.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
