March 25, 2010 at 08:00 AM EDT
Avon Acquires Liz Earle Beauty Co. Limited
Company Sees Complementary Fit With Fast-Growing U.K. Based Naturally Active Skincare Brand

NEW YORK, March 25 /PRNewswire-FirstCall/ -- Avon Products, Inc. (NYSE: AVP) today announced its acquisition of Liz Earle Beauty Co. Limited, a fast-growing, privately-held brand of naturally active skincare products sold primarily through direct-to-consumer channels. The U.K. brand will become part of Avon's global skincare portfolio, broadening Avon's leadership position in anti-aging skincare with Liz Earle's expertise in botanical ingredients and natural positioning.

Avon said that the acquisition was consistent with its previously stated intention to explore opportunities that would complement its core beauty direct-selling business.  Avon also stated that Liz Earle Naturally Active Skincare will continue to be managed independently as a stand-alone brand under the leadership of co-founders Liz Earle and Kim Buckland, and will maintain its headquarters in Ryde, Isle of Wight, United Kingdom.

Andrea Jung, Avon's chairman and chief executive officer, said, "We are delighted to welcome Liz Earle Naturally Active Skincare to Avon, and we see this new partnership as a perfect fit for both companies.  Liz Earle's tightly edited range of award-winning, naturally active skincare products is highly complementary to Avon's anti-aging skincare and broader beauty portfolio. It also represents a long-term opportunity to develop a stand-alone Liz Earle direct-selling Representative channel."  

The existing Liz Earle Naturally Active Skincare (LENAS) product range offers head-to-toe skincare solutions with products that deliver results with integrity and efficacy to the beauty-savvy customer. Since its conception, the brand has evolved into a full-service beauty line formulated to treat all skin types holistically with naturally active ingredients. LENAS has the answer to every modern beauty need and provides total skincare for the face and body for all ages and skin types.  

"We are very excited to be aligning with an iconic global beauty brand like Avon," said Liz Earle, co-founder. "We believe that the Liz Earle Naturally Active Skincare philosophy and extraordinary brand loyalty we have built in the U.K., when combined with Avon's presence in more than 100 markets around the world, offers an outstanding opportunity for global expansion for our company."  

"Joining forces with Avon is a dream come true for us," said co-founder Kim Buckland. "Just as Liz Earle Naturally Active Skincare has its own 'Precious Recipe' which lies at the heart of all we do, Avon has a long-established reputation for its high levels of customer service, its great workplace environment, and its contributions to the well-being of society."

Liz Earle co-founded the company 15 years ago after an extensive career as a beauty and wellness expert in print and broadcast journalism. This experience led her to develop skincare formulations to treat her own sensitive, eczema-prone skin. Her at-home skincare remedies evolved into Liz Earle Naturally Active Skincare when she teamed up with her great friend and business partner, beauty industry marketing expert Kim Buckland. In addition to developing LENAS, Liz has written and published over 30 books covering a wide range of beauty, health and lifestyle issues.  Her most recent publication, Skin Secrets, launched in the U.K. in 2009.

The transaction will be structured as an all-cash acquisition of 100% of the company, and Avon said that it will not have a material impact on earnings per share. Financial terms were not disclosed.

Avon, the company for women, is a leading global beauty company, with over $10 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than 100 countries through approximately 6.2 million active independent Avon Sales Representatives. Avon's product line includes beauty products, as well as fashion and home products, and features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals, and Mark. Learn more about Avon and its products at http://www.avoncompany.com/.

SOURCE Avon Products, Inc.

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