12.28.12
Natura Cosmeticos SA is Brazil’s largest maker of beauty products, but the company continues to build its international business. Last week, Natura agreed to buy 65%of Aesop, an Australian beauty firm, for $70.5 million. Aesop has brick-and-mortar stores around the world.
The announcement from Natura comes at a time when the world's biggest direct selling business is feeling heat from investors. Avon aims to save $400 million by the end of 2015by eliminating about 1,500 jobs globally and exiting South Korea and Vietnam.
Natura's expansion plans won't come cheaply to investors. Natura trades trades at 28 times estimated 2013 earnings, compared with 17 for Avon, but analysts note that Natura’s sales growth has outpaced its bigger rival every year since 2007. Natura gets 88% of its sales from Brazil, while Avon gets about 50% from Latin America.
The announcement from Natura comes at a time when the world's biggest direct selling business is feeling heat from investors. Avon aims to save $400 million by the end of 2015by eliminating about 1,500 jobs globally and exiting South Korea and Vietnam.
Natura's expansion plans won't come cheaply to investors. Natura trades trades at 28 times estimated 2013 earnings, compared with 17 for Avon, but analysts note that Natura’s sales growth has outpaced its bigger rival every year since 2007. Natura gets 88% of its sales from Brazil, while Avon gets about 50% from Latin America.