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Natura & Co. mulls separation from Avon International

Sophie Smith
07 February 2024

Brazilian beauty group Natura & Co. is assessing the possible separation of Avon International into an independent publicly traded company as it attempts to unlock further shareholder value.

The announcement is "consistent" with the group's strategy of simplifying its corporate structure, following its divestments of both Aesop and The Body Shop last year.

The structure of the potential transaction is still being assessed but it is expected that it would result in two separate, standalone entities (Natura and Avon) with "unique business plans, independent governance and management teams better equipped to pursue more tailored strategies to drive long-term shareholder value".

The group would continue to operate both brands in Latin America, with Avon indirectly benefitting from sales in the region through a commercial arrangement with Natura.

"There can be no assurance that any separation will ultimately be recommended by the Board of Directors. Completion of a separation would be subject to various conditions, including, among others, final approval from the Board of Directors and consent from the majority of shareholders," the group said in a statement.

"While Natura &Co´s management conducts the strategic assessment, the Company continues to implement Avon´s turnaround strategy and to integrate the businesses of Natura and Avon in Latin America."

The news comes as Avon makes a major push into bricks-and-mortar retail in the UK, with plans for its first stores announced at the end of last year.


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