Report: Avon in Talks With Private Equity Firms for Stake Sale

Cosmetics seller Avon Products Inc (NYSE:AVP) is in talks with various private equity firms to sell a stake in the struggling company, the Wall Street Journal reported.

Avon is conducting an auction process for a private investment in public equity (PIPE), the WSJ reported, citing people familiar with the matter.

The private equity firms include Cerberus Capital Management and Platinum Equity, the WSJ said.

Bids for the PIPE auction are due next week, the paper said, adding that this investment is just one of the options Avon is looking at.

It is unclear what the size of the stake would be or if the deal would go through, the report said.

Avon and Platinum Equity declined to comment. Cerberus was not immediately available for comment.

Avon has been struggling to turn around its business as it loses representatives – the so-called "Avon Ladies" – in the United States and as it grapples with weak demand in Brazil.

The company' shares initially jumped 12.6 percent on the news, before giving up the gains to trade flat.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)