Avon Avoids Proxy Contest By Reaching Agreement With Activist Investors

Avon Products, Inc., said it has reached an agreement with an investor group led by Barington Capital Group, L.P., which includes NuOrion Partners AG and other investors that collectively own more than 3 percent of the beauty company’s outstanding shares. As part of the agreement, Barington received the right to approve the appointment of an independent director to Avon’s board that will be selected jointly by the company and Cerberus Capital Management, L.P. Also, under the terms of the deal, Barington has agreed to withdraw its nominations for election to Avon’s board of directors at the company’s 2016 annual shareholders’ meeting.