Struggling cosmetics seller Avon Products Inc. on Monday rejected a $10 billion buyout offer from Coty Inc., a smaller beauty products maker looking to capitalize on Avon's business woes. The $23.25-per-share bid marked a 20 percent premium to Avon's closing stock price Friday. Avon said that was too low. But investors frustrated with the company's shrinking profits and disappointing sales growth sent the stock soaring 17 percent on the news.
Coty, which holds perfume licenses for brands including Calvin Klein and Marc Jacobs, is owned by Joh A. Benckiser SE. Founded in 1904 in Paris by Corsican-born Francois Coty, the company helped develop perfume into a mass product, with 36 million consumers two decades later. Coty’s previous purchases include $400 million for a majority stake in Chinese skin-care company TJoy Holdings Ltd. in December 2010.
Coty, which holds perfume licenses for brands including Calvin Klein and Marc Jacobs, is owned by Joh A. Benckiser SE. Founded in 1904 in Paris by Corsican-born Francois Coty, the company helped develop perfume into a mass product, with 36 million consumers two decades later. Coty’s previous purchases include $400 million for a majority stake in Chinese skin-care company TJoy Holdings Ltd. in December 2010.
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