Natura's Strategic Shift: Selling Avon International to Focus on Latin America Growth

In a significant move to streamline operations and sharpen its focus, Natura has announced a binding agreement to sell Avon International's businesses in Europe, Africa, and Asia to Regent. This decision marks a pivotal moment in Natura's ongoing journey toward corporate simplification, a process that began in 2022.

Key Details of the Agreement

The transaction is currently pending the fulfillment of customary conditions, which include obtaining necessary regulatory approvals. Notably, Avon operations in Russia will not be included in this sale, remaining classified as "held for sale." Despite the divestment, Natura reassures that its core operations in Latin America will not be affected. The intellectual property rights and the management of the Avon brand in Latin America will continue to be retained under Natura's portfolio.

Fábio Barbosa, Chairman of Natura's Board of Directors, emphasized that this agreement is a critical milestone in the simplification process that began three years ago, aimed at enhancing growth in Latin America. He stated, "Avon International has been implementing a robust transformation agenda, and we believe this journey will be strengthened, resuming sustainable growth of this iconic brand that has transformed the global beauty market for the past 139 years."

The Legacy of Avon

Avon holds a remarkable legacy as a pioneer in the beauty industry. Since its inception in 1886, the brand has connected beauty with personal relationships, largely recognized through the legendary figure of the Avon Lady, who championed social commerce long before it became a trend. Michael Reinstein, Chairman of Regent, expressed his admiration for the brand's historical impact, saying, "There are very few companies that have touched as many lives as Avon. We are honored to support the millions of Avon representatives as we carry forward the heritage of this legendary brand."

Implications for Latin American Operations

The integration of Avon and Natura's businesses in Latin America is on track for completion by the end of this year. This amalgamation has been delivering significant efficiency gains, allowing Natura to position Avon more effectively in the market. João Paulo Ferreira, CEO of Natura, highlighted that the continued efforts to reposition the Avon brand and redefine its innovation portfolio instill confidence that this brand will reclaim growth in the region, further securing Natura's leadership.

In a preceding announcement on September 15th, Natura revealed the sale of Avon's assets in Central American countries including Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic, to Grupo PDC. This transaction continues the trend of divesting underperforming segments, reinforcing the company's commitment to focus on its core Latin American market.

About Natura

Founded in 1969, Natura has grown to be the leading beauty and personal care company in Latin America. The brand has consistently been recognized for its reputation and environmental, social, and governance (ESG) performance, topping the Merco ranking for eleven consecutive years. By partnering with local communities in the Amazon, Natura has pioneered the cosmetic use of Brazil's rich biodiversity, benefiting numerous families and supporting the conservation of vast forest areas.

In 2014, Natura was the first publicly traded company to achieve B Corp certification from B Lab, acknowledging its commitment to balancing profitability with positive social and environmental impacts. With a network of over 3 million consultants across Latin America, Natura products are accessible via multiple channels including e-commerce, the Natura app, and over 1,000 retail outlets.

About Regent

Regent is a global holding company with investments across various sectors including consumer goods, technology, media, and automotive. They recently expanded their horizons with acquisitions that showcase their strategic growth plans. Regent's portfolio features multiple reputable brands and is headquartered in Beverly Hills, California.

In conclusion, Natura's sale of Avon International marks a transformative step in the company's journey, allowing for enhanced focus and growth in Latin America while maintaining the integrity and legacy of the Avon brand.