To avoid a proxy fight
Cosmetics maker Avon Products avp said it reached an agreement with Barington Capital Group, giving the activist investor the right to approve appointment of an independent director to the company’s board.
The Barington nominee will have to be jointly selected by Avon and its top investor Cerberus Capital Management, which bought a majority of Avon’s North America business earlier this month.
“We are pleased to have reached this settlement agreement with Barington, which allows us to avoid a potential proxy contest,” said Chan Galbato, Avon’s non-executive chairman.
Avon also named former FedEx Corp executive Cathy Ross to its board on Monday.
The Barington-led group, including NuOrion Partners, proposed a restructuring of Avon in December, asking to add new independent directors and recruit a new senior management team.
The Barington-led group owns a more than 3% stake in Avon.
Reuters had reported on Sunday that Avon was close to a deal with activist investors in which it will add a new independent director to its board in exchange for the activists backing away from a proxy fight.