Brazil’s Natura & Co has agreed to buy Avon Products in an all-share transaction valued at around US$2 billion which will see it become the world’s fourth biggest ‘pure-play beauty group’.

Under the deal, Natura & Co (the owner of Natura, The Body Shop and Aesop) expects to generate gross revenues of over US$10 billion per year through Avon and Natura’s 3200 stores and 6.3 million direct selling consultants.

Announcing the takeover, Natura & Co, which will hold 76 percent of the shares, said it would leverage its “iconic brands, common passion for relationships and its omnichannel capabilities” to “bring beauty to over 200 million consumers across the world, anytime, anywhere, every day”.

The group expects the takeover to result “in target synergies estimated at US$150 million to US$250 million annually”.

Natura co-founder Luiz Seabra said the company had always looked at Avon with respect and admiration.

“Natura was founded on its passion for beauty and relationships, and today’s transaction creates a major force in the direct-to-consumer space,” he said.

“Direct selling was a social network before the word even existed, and the arrival of technology and globalisation only multiplied opportunities to connect with consumers in a meaningful way.

“The peer-to-peer sales model is evolving towards social selling and the power of digital allows the group to go beyond providing products and advice, and advances women empowerment, through financial independence and enhanced self-esteem.

“We believe that business can be a force for good and together with Avon, we will amplify our pioneering efforts to bring social, environmental and economic value to an ever-expanding network.”

Avon CEO Jan Zijderveld described the deal was “an exciting new chapter in Avon’s130-year history”.

“It stands as a testament to the progress of our efforts to ‘Open Up Avon’, and we believe it will allow us to significantly accelerate our strategy and further expand into the online channel,” he said.

“It will also enable us to better serve our millions of representatives.”

* Established in 1886 by door-to-door salesman David McConnell,  in 2016 Avon separated into two companies, Avon Products (operates in all countries except US, Canada and Puerto Rico) and New Avon (operates in US, Canada and Puerto Rico only)