Avon Products Reaches Deal With Activist Investors To Avoid Proxy Fight

(RTTNews) - Avon Products Inc. (AVP) and an investor group led by Barington Capital Group, L.P., including NuOrion Partners AG and certain other investors that collectively own over 3% of the outstanding shares of the Company, announced that they have reached an agreement in connection with the Company's 2016 Annual Meeting of Shareholders.

As per the terms of the Agreement, Barington has been granted the right to approve the appointment of an independent director to the Avon Board that will be selected jointly by the Company and Cerberus Capital Management, L.P. Also under the terms of the Agreement, Barington has agreed to withdraw its nominations for election to Avon's Board of Directors at the Company's 2016 Annual Meeting and to vote all of its shares in favor of the nominees proposed by the Avon Board.

In addition, Avon Products announced the election of Cathy Ross to its Board of Directors, effective March 24, 2016. Ross will serve on the Audit Committee and will stand for election at the Company's 2016 Annual Meeting of Shareholders.

Until her retirement in 2014, Ms. Ross served as Executive Vice President and Chief Financial Officer of FedEx Express.

As previously announced, Avon reconstituted its Board of Directors at the close of its strategic partnership transaction with Cerberus Capital Management, L.P. Ms. Ross is one of the two independent directors who are being jointly selected by Avon and Cerberus under the terms of the transaction. The addition of Ms. Ross increases the size of the Avon Board from nine to ten members, all of whom are elected annually.