Avon's board has run out of time to accept a $10.7 billion takeover bid from makeup giant Coty, because the latter is withdrawing its offer and moving on.
Coty has made a few attempts in recent months to purchase Avon, but the struggling company kept telling umming and hawing. Coty, in the press release announcing it had rescinded its offer after Avon refused to call, commented, "While we are disappointed, we wish you success in pursuing your standalone turnaround strategy."
While the pair aren't likely to kiss and make-up, the news didn’t go over well with investors. The Wall Street Journal reports that Avon Products shares took a 9.8% fall Tuesday morning.
”Avon's annual profit has shrank in each of its last three years, and its first-quarter results contained further disappointment, as margins fell yet again and executives warned that results in the U.S. and Brazil will weaken further still,” the Journal adds.
The one positive thing Avon is hanging onto right now is that it has a new CEO, Sherilyn McCoy, who came over from Johnson & Johnson late last month to try and lead the company back to more stable ground.
McCoy has bought herself some time as she makes the rounds on a fact-finding tour around the U.S., Brazil, China, Mexico and Russia. It remains unclear how long she’ll have before investors get unruly, especially as there’s no other company waiting at the doorstep to help anytime soon.
Coty, meanwhile, is dusting itself off and looking ahead. The company unveiled a new website Tuesday with a “fresh look and feel” that “modernizes the company's digital presence and is designed to reflect Coty's innovative ‘Faster. Further. Freer.’ corporate culture,” a press release states. The goal is to showcase Coty's stable of branded cosmetics and fragrances, some of which are celebrity tie-ins, the release elaborates:
The site highlights the company's balanced portfolio of fragrance, color cosmetics, nail, and skin and body care labels. Geared towards current Coty employees, prospective talent, media, investors and consumers, the site is unique in its wide range of audiences and serves as a looking glass into Coty's unique corporate culture. "We are thrilled to announce the launch of our new corporate website, which we feel better represents our culture, constantly evolving brand portfolio and rich history," said Coty CEO Bernd Beetz. "By incorporating social media, we are bringing Coty content to a higher level, providing users with accurate, up-to-date information in one central location." The site also features a newsfeed, located on the home page that will highlight brand news and press releases.
"The refreshed Coty website provides a live snapshot of a brand's world through a real-time, socially-enabled experience," said Sean Reynolds, global creative director at iris, which designed the site, according to the release. "The new site construction pays homage to each brand, granting them control over their individual pages in order to convey a unique brand personality."
The Coty Prestige brand portfolio is distributed in prestige and ultra-prestige stores and includes Balenciaga, Bottega Veneta, Calvin Klein, Cerruti, Chloe, Chopard, Davidoff, Jennifer Lopez, Jil Sander, JOOP!, Karl Lagerfeld, Kenneth Cole, Gwen Stefani, Lancaster, Marc Jacobs, Nikos, philosophy, Roberto Cavalli, Sarah Jessica Parker, Truth or Dare by Madonna, Vera Wang, Vivienne Westwood and Wolfgang Joop.
The Coty Beauty brand portfolio is more widely distributed and includes adidas, ASTOR, Beyonce Knowles, Celine Dion, David and Victoria Beckham, Elite Models, Esprit, Exclamation, Faith Hill, GUESS?, Halle Berry, Heidi Klum, Jovan, Kate Moss, Kylie Minogue, Lady Gaga, Manhattan, Manhattan Clearface, Miss Sporty, Nautica, N.Y.C. New York Color, Nicole by OPI, OPI, Pierre Cardin, Playboy, Rimmel, Sally Hansen, Stetson, Tim McGraw, TJoy and Tonino Lamborghini. Coty and Puig S.L. have a strategic partnership for the distribution of the perfume lines of Antonio Banderas, Carolina Herrera, Nina Ricci, Paco Rabanne, Prada, Shakira and Valentino in the United States and Canada.