Pinheiro Neto advises Natura on merger with Avon
Pinheiro Neto has acted as counsel in Brazil to local company Natura Cosméticos on its merger with Avon Products, and which results in the combination of the two companies’ businesses, operations and shareholding bases, and which creates the fourth-largest pure-play beauty products group in the world.
“The combination creates a best-in-class multi-brand and multi-channel beauty group, with direct connections to consumers on a daily basis,” Pinheiro Neto said in a statement. “The group will hold leading positions in relationship selling through Avon´s and Natura’s over 6.3 million consultants and representatives, a global footprint through 3,200 stores, as well as an expanded digital presence across all companies. The combined group is expected to have annual gross revenues of over $10 billion, more than 40,000 associates and be present in 100 countries.”
The transaction is valued at $3.7 billion, taking into account the 24 per cent stake of Avon shareholders, and $11 billion for the combined company resulting from the merger.
Natura was advised in the US by Davis Polk & Wardwell, while Avon Products was counselled in Brazil by Mattos Filho Advogados and in the US by Cravath, Swaine & Moore. Avon’s board was advised by Paul, Weiss, Rifkind, Wharton & Garrison.
Pinheiro Neto’s team was led by partners Henrique Lang (pictured), Guilherme Monteiro and Renê G. S. Medrado, and tax partner Flavio Veitzman, with senior associates Camila Carvalho Gomes, Gustavo Crêdo and Diego Alves Amaral Batista, and associates Luís Henrique Perroni Fernandes and Frederico A. Menescal C. Rocha.
