Natura sets full focus on Latin America and sells Avon International

Natura has announced a binding agreement to sell Avon International so that it can fully focus on Latin America. The buyer, Regent, will take over the business in Europe, Asia, and Africa. 

The completion of the transaction differs depending on customs, as well as the receipt of regulatory approvals. 

The company notes that the sale of Avon International does not affect its business in Latin America, which is the core of Natura’s strategic priorities. Additionally, the Brazilian company will retain control of the region’s intellectual property rights and brand management.

The company shares that Avon Russia is not included in this agreement but is still classified as “held for sale.”

Selling Avon International is part of the company’s simplification strategy, says Natura.

“This agreement represents the final steps of the simplification journey initiated three years ago, focused on the growth of our operations in Latin America,” says Fábio Barbosa, chairman of Natura’s board of directors.

“Avon International has already been implementing a robust transformation agenda, and we believe this journey will be strengthened, resuming sustainable growth of this brand that has transformed the global beauty market over the past 139 years.”

João Paulo Ferreira, CEO of Natura, adds: “The operational integration of Avon and Natura in Latin America, which will be fully completed by the end of this year, has already been delivering and will continue to generate significant efficiency gains.”

Financial struggles

Earlier this week, Natura sold off Avon’s Central American and Dominican Republic operations to Grupo PDC as part of the same simplification strategy. The deal included a symbolic price of US$1 and an additional US$22 million when it closes, expected in October. 

“The ongoing work to reposition the Avon brand and to redefine its innovation portfolio gives us confidence that this brand will resume its growth in the region and help strengthen Natura’s leadership in the Latin American markets,” says Ferreira.

Natura acquired the company four years ago, but according to court papers, it filed for bankruptcy due to pandemic pressures and scores of lawsuits alleging its talc products caused cancer. Avon Products said it spent around US$225 million in settlement payments.

Speculations of the potential sale started following the bankruptcy announcement, and Natura has been exploring Avon International’s operations outside of Latin America for some time.