Cerberus Capital Management LP is nearing a deal to buy 80% of Avon Products Inc.’s North American business and take a nearly 17% stake in the famed cosmetics company, according to people familiar with the matter.
The private-equity firm will pay $170 million for the majority stake in Avon’s ailing North American business, and an additional $435 million for the stake in the parent, which had a market value of $1.8 billion as of Wednesday’s close, the people said. A deal could be announced as soon as Thursday, though it could fall apart at the last minute, the people cautioned.
As part of the agreement, Cerberus will take three seats on Avon’s board of directors, and the company will name two new independent directors, the people familiar with the matter said. A new Avon