Avon Sells UK Skincare Brand Liz Earle To Walgreens For 140 Million Pounds

Avon Products Inc. said Thursday it has sold its UK-based natural skincare brand Liz Earle to Walgreens Boots Alliance Inc. in all-cash deal worth 140 million pounds. Avon will use the proceeds to redeem $250 million of notes due March 2016, the company said in a statement. "This is a significant step forward in enhancing the company's capital structure to advance its strategic priorities," said the statement. Avon bought the brand in 2010 and managed it as a standalone business away from its core direct-selling operation. Shares were indicating higher in light premarket trade, but are down 36% in the year so far, while the S&P 500 is down 0.6%.