Avon Sells Liz Earle

Avon Products, Inc. has sold Liz Earle, its wholly-owned, UK-based natural skincare brand, to Walgreens Boots Alliance for £140 million, or approximately $215 million,  in an all-cash transaction.

“Avon remains committed to our strategic priorities, and we are focused on promoting our own skincare and broader beauty portfolio. It is important to ensure all areas of the business are well-positioned to deliver near-term contributions as well as long-term opportunity. This transaction allows Avon to realize immediate benefits while continuing to strengthen our balance sheet,” said Avon CEO Sheri McCoy in a statement. “Liz Earle is the perfect fit for Walgreens Boots Alliance where it already has a strong presence in its retail stores.”

Avon acquired Liz Earle in March 2010 and has since managed the brand as a standalone business from the core direct-selling business. In 2014, Liz Earle represented approximately 1% of the company's consolidated revenue and adjusted operating profit, or approximately 3% of its Europe, Middle East & Africa reporting segment's revenue and adjusted operating profit.

Proceeds from the transaction will be used for the company's anticipated redemption of $250 million, 2.375% Notes due March 2016. This is a significant step forward in enhancing the company's capital structure to advance its strategic priorities, the company penned in the announcement.