Natura completes sale of Avon Worldwide whereas retaining Latin America operations

THE WHAT? Brazilian magnificence group Natura has finalised the sale of Avon Worldwide to US-based funding agency Regent LP, whereas retaining possession of the Avon model and operations throughout Latin America.

THE DETAILS The transaction, first introduced in September, was accomplished on December 31 and transfers management of Avon Worldwide outdoors Latin America to Regent LP. Natura confirmed that the deal doesn’t embody Avon’s enterprise in Russia.

Underneath the phrases of the settlement, Natura acquired a nominal consideration of £1 for Avon Worldwide. Nonetheless, the corporate will proceed to help the enterprise by a secured credit score facility of US$25 million, out there till December 2026 and carrying a five-year maturity. The Avon model, together with financial rights and mental property in Latin America, stays totally owned by Natura.

THE WHY? The transfer displays Natura’s ongoing efforts to simplify its international construction and refocus on its core Latin American markets, which accounted for 85 % of group turnover in the latest quarter. Whereas the group has decreased losses year-on-year, its efficiency continues to be formed by uneven regional circumstances, together with a slowdown in Brazil’s magnificence market and operational challenges in Argentina, partially offset by restoration in Mexico. Retaining Avon’s Latin American enterprise underscores the strategic significance of the area to Natura’s long-term turnaround plans.

Supply: Trend Community