NEW YORK, Jan. 29, 2018 /PRNewswire/ -- A group of
shareholders of Avon Products, Inc. (NYSE: AVP) led by Shah
Capital, Barington Capital Group, L.P., and NuOrion Partners that
collectively beneficially owns approximately 3.5% of the
outstanding common stock of the Company (the "Shareholder Group"),
announced today that it has sent a letter to the Board of Directors
of Avon calling on the Board to
promptly retain a financial advisor to explore all strategic
alternatives to maximize shareholder value, including a sale of the
Company in whole or in
parts.
The Shareholder Group is extremely disappointed with the
deteriorating operating and share price performance that has
occurred under the stewardship of the current Board. The
Shareholder Group is also dismayed by the Board's failure to act
quickly and decisively on the past recommendations its members have
made to improve the long-term performance of the Company, including
promptly hiring a new chief executive officer – a step that has
been long overdue and members of the Shareholder Group recommended
over two years ago.
As a result, the Shareholder Group has lost confidence in the
ability of Avon's current Board to
create meaningful long-term value for its public shareholders, and
sees no reason why shareholders should continue to wait for a
turnaround from a Board that has overseen a tremendous destruction
of shareholder value. The Shareholder Group therefore
believes that the best course of action is for the Board to retain
a financial advisor to explore the sale of the Company.
The Shareholder Group believes that Avon would be highly attractive to a range of
buyers due to its many positive attributes, including its
well-known 130-year old brand; its vast product offering generating
over $5.7 billion in sales; its
strong market positions in developing countries such as
Brazil, Russia and Mexico; its owned manufacturing operations;
and its six million direct sales representatives. In
addition, a multinational acquirer would immediately benefit from
its ability to improve Avon's
capital structure and the tax efficiency of its operations.
The Shareholder Group is convinced that a better capitalized
strategic buyer would do a much better job of unlocking
Avon's tremendous value potential
than the Company's current Board.
The full text of the Shareholder Group's letter is available for
viewing at the following link: www.Barington.com/Avon.html
About Shah Capital
Shah Capital is a global investment firm focusing primarily on
deep value, turn-around, and special situations. The firm launched
its flagship investment vehicle, Shah Capital Opportunity Fund, in
2006, which incorporated its philosophy of spotting trends early,
acting with speed, and maintaining strict discipline, all built on
a foundation of deep fundamental research.
About Barington Capital Group, L.P.
Barington Capital Group, L.P. is a fundamental, value-oriented
activist investment firm that was established by James A. Mitarotonda in January 2000.
Barington invests in undervalued publicly traded companies that
Barington believes can appreciate significantly in value as a
result of a change in corporate strategy or improvements in
operations, capital allocation or corporate governance.
Barington's investment team, advisors and network of industry
experts draw upon their extensive strategic, operating and
boardroom experience to assist companies in designing and
implementing initiatives to improve long-term shareholder value.
Barington has significant experience investing in
consumer-focused companies, with prior investments in companies
such as The Children's Place, Darden Restaurants, Dillard's, The
Jones Group, Warnaco, Lone Star Steakhouse, Nautica, The Pep Boys
and Steven Madden.
About NuOrion Partners
NuOrion Partners is a private investment firm that makes direct
investments in undervalued corporate fallen angels that can regain
their economic strength. NuOrion has an active industrial
approach to investing, built on management-centric investment
partnerships.
Important Disclosures
Any views expressed in the letter represent the opinion of the
members of the Shareholder Group, whose analysis is based solely on
publicly available information. No representation or
warranty, express or implied, is made as to the accuracy or
completeness of any information contained therein. The
members of the Shareholder Group expressly disclaim any and all
liability based, in whole or in part, on such information, any
errors therein or omissions therefrom. The Shareholder Group
also reserves the right to modify or change its views or
conclusions at any time in the future without notice.
The information contained in the letter does not recommend the
purchase or sale of any security nor is it an offer to sell or a
solicitation of an offer to buy any security. Furthermore,
the information contained in the letter is not intended to be, nor
should it be construed or used as, investment, tax or legal
advice. No representation or warranty is made that the
Shareholder Group's investment process or investment
objectives will or are likely to be achieved or successful or
that the Shareholder Group's investments will make any profit or
will not sustain losses. Past performance is not indicative
of future results.
Nothing contained in the letter should be taken as any form of
commitment on the part of the Shareholder Group or any member
thereof to take any action in connection with any particular
security. The members of the Shareholder Group and their
affiliates are in the business of buying and selling
securities. They have, and may in the future, buy, sell
or change the form of their position in any security for any
or no reason whatsoever.
MEDIA CONTACT:
Nathaniel Garnick/Amanda Klein
Gasthalter & Co.
(212) 257-4170
ng@gasthalter.com
ak@gasthalter.com
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SOURCE Barington Capital Group, L.P.