JRjr33 Inc (JRJRQ)

[onemessageonly]

PART 2:The Mary Kay, CVSL, Richmont connection explained. Let's start with these headlines and news releases:

Former shareholder preparing bid for Avon - Fortune
April 11 | Wed Apr 11, 2012 8:37am EDT

(Reuters) - Richmont Holdings, a former shareholder of Avon Products Inc, is preparing a takeover offer for the beauty products company that rejected a $10 billion offer from a smaller rival earlier this month, the Fortune magazine reported.

Avon may be getting another bid: report
April 11, 2012|Andria Cheng

NEW YORK (MarketWatch) -- No. 1 direct seller of beauty products Avon Products Inc. (US:avp), which already received an unsolicited $10 billion bid from beauty company Coty Inc., may be getting another bid, Fortune reported on Wednesday. Richmont Holdings, at one point Avon's largest shareholder before ultimately selling its stake, is putting together a bid for Avon, Fortune reported without identifying where it obtained the information. It added Richmont founder and chairman John Rochon was a former CEO of Avon's rival Mary Kay and led an attempted takeover of Avon that began in the late 1980s and ended in the early 1990s.

Richmont Said to Be Arranging Financing for Avon Bid
(Bloomberg)
By Lauren Coleman-Lochner & Jeffrey McCracken - May 3, 2012 7:19 PM GMT-0400

Richmont Holdings, a closely held company that invests in consumer brands, is arranging financing to make a bid for Avon Products Inc. (AVP), said two people familiar with the matter.
Richmont has hired financial advisers and is well along toward assembling a bid, said the people, who declined to be identified because the matter isn’t public............The appointment of Avon’s new CEO hasn’t dissuaded Richmont,which would continue Avon’s global direct-selling model, said one of the people.

Richmont founder and Chairman John Rochon served as CEO of Mary Kay Inc., a door-to-door cosmetics seller that awarded its signature pink Cadillacs to top representatives. Richmont attempted to take over Avon in the late 1980s and early 1990s, during Rochon’s tenure at Mary Kay, acquiring 22 percent of its stock at the time. Richmont’s plans now may depend in part on Coty’s next move, said one person.

Richmont Holdings still sweet on Avon
by Bloomberg News
May 16, 2012 3:05 p.m.

An exerpt from the piece:

"Richmont has spoken with several private-equity funds and sovereign wealth funds about collaborating on a bid for the world's largest direct seller of cosmetics, said the people. Richmont contacted Avon before Coty withdrew to say it would be interested in a bid if the company were running a sales process, said one of the people."

Read more: http://www.crainsnewyork.com/article/20120516/RETAIL_APPAREL/120519909#ixzz2HtK3819J

Reading the link above provides some better insight. This is another important exerpt here:

"Having fended off the Coty offer, Avon is focused on a standalone plan and doesn't take Richmont's interest seriously, said another person familiar with the matter.

Whether Avon engineers a turnaround or sells itself, the company “offers terrific value,” said Josh Strauss, a co-portfolio manager of Appleseed Fund at Pekin Singer Strauss Asset Management in Chicago, which oversees about 1 million shares of Avon. “This is a business that is inherently fixable. It may take a couple years, but it's fixable.”

To be perfectly honest, I feel that Avon is too risky. Reading through other pieces of information, it seems that some feel that Rochon/Richmont would not be able to secure the necessary funds to pull off a complete 100% acquisition. But here lies an important fact. Neither of the main parties involved are commenting, and a person familiar with the matter is quoted as saying that Avon may not be taking "Richmont's interest seriously". But if Richmont/Rochon is serious, then moot point. ..."Game On!".

So at this point, we have established the ongoing relationship between Mary Kay and Richmont/Rochon. Also, we have established the desire to acquire Avon by Richmont/Mary Kay in the 80's and 90's, and have established the intent, yet once again, from Richmont/Rochon in the late Spring of 2012. Let that sink in for a moment, review part I, and I'll be back a little later with the conclusion(part III). We'll be using may 16th, 2012 as a starting point . The CVSL starting point was actually made public August 24, 2012. So be thinking "Time Frame".