Avon Products Inc. and Coty Inc. said they plan to market and
sell Coty fragrances through Avon's 1.5 million sales
representatives in Brazil.
The partnership between the beauty-products companies is still
being finalized, though the companies said Thursday that the intent
is for Avon to carry a collection of Coty's celebrity and lifestyle
fragrances in the Avon brochure in Brazil. The companies said the
arrangement will give Avon sales representatives a broader array of
items to sell, while providing Coty with Avon's strong direct-sales
footprint in the country.
Final plans are expected to be completed in the next few
months.
Coty made a nearly $11 billion bid for Avon in 2012 but withdrew
its offer for its struggling larger rival after Avon declined to
engage in talks.
Coty, whose products include Calvin Klein perfume, Sally Hansen
nail polish and Adidas shower gel, expects a growing middle classes
in developing countries to drive sales of its products. Coty, which
went public in June, plans to ramp up its business by increasing
sales of its top brands and expand in developing parts of Asia and
Latin America.
Meanwhile Avon, a seller of makeup and consumer products, has
faced deep investor dissatisfaction in recent years as it failed to
turn around a string of poor results or resolve a federal probe
into allegations of bribery of officials overseas.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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