Key Takeaways
- Natura has agreed to sell its Avon International operations in Europe, Africa, and Asia to Regent, excluding Avon Russia.
- The sale, pending regulatory approval, is part of Natura’s strategy to focus on Latin America, enhancing operational efficiency.
- Natura recently divested Avon’s Central America and Caribbean assets, supporting its corporate simplification plan initiated in 2022.
Overview of the Sale
Natura & Co. has finalized a binding agreement to sell its Avon International operations across Europe, Africa, and Asia to private equity firm Regent, while excluding Avon Russia from the transaction. This strategic divestment is aimed at streamlining Natura’s operations, aligning with the company’s corporate simplification program launched in 2022.
Avon International has been undergoing significant restructuring, and this move allows Natura to maintain ownership of the brand and its intellectual property in Latin America. Recently, the company divested Avon’s assets in Central America and the Caribbean to Grupo PDC, further refocusing its business strategy.
Rationale Behind the Decision
The primary goal of this sale is to bolster Natura’s emphasis on the Latin American market, where the integration of Avon has begun yielding efficiency improvements. By relinquishing its international operations, Natura aims to reinforce its positioning in Latin America, enhancing its leadership in the region. This strategy reflects a commitment to achieve renewed growth for Avon under Regent’s management and support ongoing brand repositioning efforts.
Overall, this divestment aligns with Natura’s long-term focus on enhancing its core business while allowing Avon to pursue independent growth opportunities within key markets.
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