AVON PRODUCTS &lt;AVP> TO BUY GIORGIO FOR 185 MLN

  Avon Products Inc said it reached an
  agreement in principle to purchase &lt;Giorgio Inc>, a fragrance
  company, for 185 mln dlrs in cash.
      Giorgio's annual revnues are more than 100 mln dlrs, Avon
  said. The acquisition has been approved by Avon's board, with
  the closing set for May 7.
      The transaction would have no impact on Avon's current
  dividend rate, it said.
      Giorgio's boutique in Beverly Hills, Calif., will be sold
  back to Fred Hayman, one of the shareholders, who will continue
  to operate it independently, Avon said.
      Avon said it identified Giorgio more than a year ago as a
  preferred acquisition candidate. It said it is launching a
  prestige fragrance developed in conjunction with Catherine
  Deneuve this spring.
      Giorgio will be operated as a separate subsidiary, Avon
  said, and would not compete with Avon's direct selling beauty
  products business.
  

