Natura announces the sale of Avon’s operations in Central America and the Dominican Republic

Natura announced that it has entered into an agreement to sell Avon’s operations in Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic (Avon CARD) to Grupo PDC, a consumer goods company with a presence in Central America and Peru. Natura will receive US$22 million for the transaction. In its latest earnings release, the company had already classified these assets as “held for sale,” given the high probability of a transaction being completed within 12 months.

As part of the agreement, Natura will act as the licensor of the Avon brand and as the supplier of finished products, which will continue to be marketed in these countries.

“Avon has enormous value due to its reputation, brand recognition, income generation for thousands of consultants, and deep household penetration among Latin America consumers. We are pleased to have found a partner with extensive experience in the Central American market who will continue to drive Avon’s prosperity in close partnership with Natura,” said João Paulo Ferreira, CEO of Natura.

The closing of the transaction, which depends on corporate procedures of the companies in the region, is expected to take place in October of this year.

As previously announced, the sale of these assets is part of the corporate simplification strategy launched in 2022. The transaction does not affect the company’s operations in Latin America, where the integration of the Natura and Avon brands is progressing as planned and has already been generating efficiency. In the first half of this year, Natura’s Latin American operations generated R$408 million in cash and outperformed the market in terms of growth.