Cerberus Capital Management LP is closing in on a deal to acquire Avon Products Inc.'s ailing North America business in a $170 million deal.

According to the CNBC, Cerberus will buy 80 percent of Avon's business in North America. The private equity firm will also buy 17 percent of the stake in the parent company of Avon, which will cost $435 million. Avon's parent company was valued at $11.8 billion on Wednesday.

Reuters reported the deal follows a proposal by Barington Capital to restructure Avon, as it warned investors of the possibility of a takeover on its North American business by Cerberus. Barington also called for the removal of Sheri McCor, the chief executive of Avon. She will still be on board, but Chairman Douglas Contant along with six other directors will resign after the deal pushes through.

"While we are pleased that six existing board members have agreed to step down, we are astonished that Sheri McCoy remains as CEO," said Barington Chief Executive James Mitarotonda. "We intend to explore all available options."

The Wall Street Journal wrote that the deal includes having three executives from Cerberus as part of Avon's board of directors. Cerberus will also appoint two new independent directors as a part of the deal. The company will also designate a new Avon chairman. That means there will be a turnover of nearly half of Avon's board members.

In April, it was reported that Avon was planning for strategic alternatives. Selling its North American business was a part of that plan. By September Avon was negotiating on the sale of its minority stake to Platinum Equity LLC or Cerberus. There were reports later on that Cerberus was nearing a deal on those acquisitions.

In the past several years, Avon has been facing difficulties, especially on its North American arm. Its sales in that division has been declining for the last seven years. Its revenue dropped by 19 percent world-wide during the first three quarters of 2015 to $5.3 billion.