Is Avon Back in Play?

The year(s) has not been kind to Avon Products Inc. The world’s largest direct-seller of cosmetics has been under scrutiny for bribery, has seen its sales and profits fall and ultimately forced out its long-time CEO. To make matters worse, earlier this year Avon Brass turned down Coty’s buyout offer of more than $24 a share. Yesterday, Avon’s share price was less than $14.


Luckily for Avon, Coty still seems smitten with the battered brand. According to a report in Motley Fool, Coty could be bringing its offer back to the acquisition table once again. The deal would give Coty, the world’s largest fragrance marketer, access to fragrance,which is is the largest category in Avon’s beauty portfolio.


Furthermore, notes The Fool, a merger of the two would boost Avon’s business. Avon’s skin care and makeup line is a little more developed than Coty’s. Adding Avon to its cosmetics brands would synergize Coty’s business.


Will a weakened Avon have the strength to fend off another Coty advance? Maybe it’s time to reconsider the offer.