P.M. BRIEFING : Avon’s Japan Deal Falls Through

Avon Products Inc. said today that a $450-million deal has fallen through in which the cosmetics giant was to sell its 60% interest in Avon Japan to Friends of Freesia Co. of Tokyo.

John Cox, a spokesman for Avon, said the company declined to extend the closing on the transaction, which was to have included a $338-million cash payment and two separate royalty prepayments of $70 million and $42 million, until June as had been requested by the buyer.

Avon, which previously extended the closing date until April 27 from March 30, said it “still plans to sell all or part” of its interest in Avon Japan. Cox said the company hoped to complete a deal by year-end. “There are a number of potential buyers,” Cox said.

Avon said it will exercise its right to collect a $6.3-million escrow deposit from Friends of Freesia.