Natura Mulls New Listing for Avon’s Business Outside Latin America

Brazilian cosmetics maker Natura &Co mentioned on Monday its board authorised administration to check splitting its Avon model exterior Latin America, which may spawn a brand new listed agency managing the enterprise exterior the area.

The cut up, whose particulars Natura mentioned continues to be being evaluated, could be the most recent of a sequence of strikes Natura has made over the past yr because it seems to simplify its construction, such because the divestment of its Aesop and The Physique Store manufacturers.

Natura mentioned in a securities submitting the potential deal would separate the present firm into two listed-parts.

Natura &Co Latam would function Natura model worldwide and the Avon model solely inside Latin America. Avon, in the meantime, would function its personal model exterior Latin America whereas partnering with Natura &Co Latam contained in the area.

Avon’s US enterprise, which was by no means owned by Natura, isn’t part of the deal.

In a submitting, Natura mentioned that learning the cut up was “constant” with its technique of simplifying its company construction and making its enterprise models extra autonomous.

It mentioned the transfer wouldn’t have an effect on an ongoing integration of the Natura and Avon manufacturers in Latin America, including that extra autonomy may benefit the manufacturers, which it mentioned have “distinct” geographies and shopper bases.

Natura has suffered lately as a result of excessive inflation and the financial impacts of Russia’s conflict on Ukraine, prompting CEO Fabio Barbosa to start out streamlining the corporate.

Final yr, Natura bought luxurious model Aesop to France’s L’Oréal for $2.59 billion, in addition to The Physique Store to non-public investor Aurelius Group in a deal valued at £207 million ($259 million).

Natura, which has Sao Paulo-listed shares and final month introduced plans to delist its American Depositary Shares from the New York Inventory Change, didn’t give particulars on the place the businesses could be listed underneath the potential deal.

By Andre Romani; Editors: Sarah Morland and Sonali Paul

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