Avon sells and rescues bonus

Avon sold to Liz Earle, British brand of skin care products with natural assets, to the pharmacy network Walgreens, for 140 million pounds sterling ($ 215 million). Payment, totally in cash, will be used for the early redemption of bonus due in 2016.
The brand Liz Earle, bought by Avon in March 2010, was managed as an independent business of direct sales.
In 2014, the Liz Earle represented about 1% of consolidated revenue and adjusted operating profit of American company or 3% of revenue and operating profit in Europe, Middle East and Africa.
The value obtained with the deal announced yesterday will be used on the early redemption of $ 250 million in bonuses due in March 2016. According to Avon, is an important step to strengthen the capital structure and advance strategic priorities.
The company has $ 378,8 million in debt that matures in less than a year, according to the balance of the first quarter.
"The transaction allows the Avon have immediate benefits while continuing to strengthen the balance sheet," said the President of the multinational Sheri McCoy, in a statement. Avon plans to devote himself to his own brand to the skin.