Natura&Co has announced its plans to acquire Avon Products in an all-share transaction, making the former to become the fourth leading pure-play beauty.

Financial details of the deal were not disclosed.

The combined group will hold leading positions in relationship selling through the two firm’s over 6.3 million consultants and representatives, a global footprint through 3,200 stores, besides an expanded digital presence across all companies.

This group is expected to have annual gross revenues of over $10bn, over 40,000 associates and be present in 100 countries.

By leveraging brands, and omnichannel capabilities, the expanded group will bring beauty products to more than 200 million consumers across the world.

With the addition of Avon to a portfolio that already includes Natura, The Body Shop and Aesop, Natura &Co will enhance its distribution channels and expand into new geographies.

Natura &Co expects the combination to result in target synergies estimated at $150m to $250m annually. Some of this amount will be reinvested to further boost capabilities in digital and social selling, research & development and brand initiatives and geographic footprint.

Natura co-founder Luiz Seabra said: “We have always looked at Avon with respect and admiration. Natura was founded on its passion for beauty and relationships, and today’s transaction creates a major force in the direct-to-consumer space.

“We believe that business can be a force for good and together with Avon, we will amplify our pioneering efforts to bring social, environmental and economic value to an ever-expanding network.”

Natura &Co executive chairman Roberto Marques said: “Following the acquisitions of Aesop in 2013 and The Body Shop in 2017, Natura & Co is taking another exciting, decisive step to build a global, multi-brand, multi-channel, purpose-driven Group.”

Upon the completion of the transaction, the board of directors of the combined company will consist of 13 members, three of which will be designated by Avon.

The transaction is subject to customary closing conditions and is expected to be closed in early 2020.

Based in Brazil, Natura is a personal care products holding company that sells products through representatives, while Avon is a UK-based direct-selling company that sells beauty, household, and personal care products.