UPDATE 1-Avon to sell Japan unit stake to TPG Capital

* Selling 74.67 pct stake for 7.3 bln yen

* Sale not expected have material financial impact

* TPG launches tender offer for Avon Japan outstanding stock

Nov 8 (BestGrowthStock) – Avon Products Inc (AVP.N: ) said it will
sell its 74.67 percent stake in its Avon Japan business to an
affiliate of TPG Capital [TPG.UL] for 7.3 billion yen ($89.82
million), to focus on other markets with higher growth
potential.

The world’s largest direct seller of cosmetics would need to
commit significant additional investment in the unit in order to
generate profitable growth in the near to intermediate term, it
said.

Avon Japan (4915.OS: ), the only unit in Avon’s geographic
portfolio that is publicly traded, contributes less than 2
percent of its total company sales and the sale is expected to
have no material impact on its financial statements.

As part of the transaction, private equity firm TPG Capital
is launching a tender offer in Japan for all outstanding shares
of Avon Japan at 74 yen per share, the same price that Avon has
agreed to for its shares.

Avon’s stake sale is not conditional upon TPG Capital’s
acquisition of the 25.33 percent minority stake, it said.

The transaction, due to close in the fourth quarter, is
expected to have no material impact on Avon’s financial
statements.

Effective with fourth quarter 2010 reporting, Avon Japan
will be accounted for as a discontinued operation, the company
said.
(Reporting by S. John Tilak in Bangalore; editing by Louise
Heavens)
($1=81.27 Yen)

UPDATE 1-Avon to sell Japan unit stake to TPG Capital