This morning Avon named Johnson & Johnson executive Sherilyn McCoy as its new CEO.
Just two months ago McCoy was up for the same job at Johnson & Johnson, where she's vice chairman of several divisions, but was passed over and Alex Gorsky was named its CEO, apparently because he has more operations experience.
So why did Avon choose McCoy?
Citigroup's Lauren Lieberman says that although "McCoy's name was not one we'd heard floating around as a potential CEO successor at Avon, our quick study on her background suggests a strong leader that notably was responsible for the integration of J&J's $16 billion acquisition of Pfizer's consumer business."
Lieberman recommends that McCoy "consider Avon's entire business model with a blank sheet of paper — opening up the potential for a full redesign/remapping of the global supply chain."
Avon has been struggling for months now. Investors pushed former CEO Andrea Jung out in December, and last week perfume maker Coty Inc. made a $10 billion offer to buy the company and turn it around, which Avon rejected. The direct beauty sales company has been having problems abroad, where 80 percent of its sales are, and is facing a Foreign Corrupt Practices Act investigation.
Last week when Coty made its offer, an insider told Bloomberg that it could take three years to turn the company around.Now read about one of Avon's competitors, Tupperware, which has been quietly building a beauty empire in Latin America >
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