JANUARY 6, 2020
Unprecedented transaction in Brazil allows shareholders of US-based Avon to receive Natura &Co’s ADRs issued by BNY Mellon in first-of-its-kind all-share transaction.
BNY Mellon was chosen by Natura &Co, a global, multi-channel and multi-brand cosmetics group, as Depositary Bank, to enable their acquisition of Avon Products, Inc. (Avon). This all-share transaction listed Natura &Co’s American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE: NTCO). Natura &Co is the first Brazilian multinational to use ADRs in their acquisition of an American company.
BNY Mellon established the Natura &Co ADR program for its Avon acquisition, which creates the fourth-largest pure-play beauty group in the world.* As of transaction close on January 3, 2020, each share of Avon was converted into 0.3 ADRs, or, at the election of the Avon shareholder, 0.6 Natura &Co shares trading in Brazil. Each ADR represents two common shares of Natura &Co. The ADRs are listed on the NYSE under ticker symbol “NTCO.”
“This deal represents a significant milestone in the Brazilian market and highlights the capitalization, flexibility and convenience offered by depositary receipts in structuring cross-border M&A,” said Chris Kearns, CEO of BNY Mellon Depositary Receipts. “BNY Mellon’s local expertise and proven track record of implementing and executing complex transaction structures was critical to the success of this transaction. We look forward to continuing to support Natura &Co’s growth.”
"Natura &Co is now listed and traded on the NYSE. This was a crucial step to conclude the acquisition of Avon and create the fourth-largest pure-play beauty group in the world," said Jose Filippo, Chief Financial Officer and Investor Relations of Natura &Co. "We are very proud to choose BNY Mellon as our depositary to support us in this unique all-share transaction and beyond.”
BNY Mellon is the leading depositary bank in the industry. With our global footprint and deep expertise, BNY Mellon acts as a depositary bank for issuer clients looking to access the global capital markets through depositary receipts (DRs). As of September 30, 2019, BNY Mellon acted as depositary bank for 60 DR programs for Brazilian companies, accounting for 60% of the market.
*According to Natura &Co’s press release as of January 2020 posted here.
BNY Mellon is a global investments company dedicated to helping its clients manage their financial assets during the investments’ full lifecycle. Whether providing services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of September 30, 2019, BNY Mellon had approximately $35.8 trillion in assets under custody and/or administration globally, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments.
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