Background on Natura and Avon
Natura, a renowned Brazilian cosmetics company, has reached an agreement to sell Avon’s operations in Central America. The deal involves a symbolic payment of one dollar and a credit of 22 million dollars that Avon Guatemala holds with Natura’s Mexican subsidiary.
Details of the Agreement
Under this agreement, Natura will continue supplying finished products to Avon Card, the name of the company in Central America and the Dominican Republic. Furthermore, Natura will act as the brand licensor in the region, allowing it to keep generating income.
The transaction is expected to close by October 30, though it might happen sooner, contingent on the societal reorganization of the involved legal entities.
Natura’s Strategic Evaluation
Natura mentioned that it is still evaluating “strategic alternatives” for selling Avon International, classified as an available-for-sale asset since the second quarter of this year.
About Grupo PDC
Grupo PDC, the acquiring party for Avon Card, is a consumer products company with a presence in Central America and Peru. In 2019, they acquired Dkasa, a Peruvian manufacturer and distributor of home care and cleaning products.
Natura’s Financial Recovery
Thanks to its simplification and restructuring process, Natura reported a net profit of 44.4 million reais (approximately 8.2 million dollars) in the first half of the year, reversing losses of 1.793.8 million reais (approximately 322 million dollars) in the same period of 2024.
Key Questions and Answers
- Who is involved in this agreement? Natura, a Brazilian cosmetics company, and Avon, with Grupo PDC as the acquiring party for Avon’s Central American operations.
- What will Natura continue to do after the sale? Natura will keep supplying finished products to Avon Card and act as the brand licensor in the region.
- When is the transaction expected to close? The closing is anticipated by October 30, but it may occur earlier depending on legal reorganizations.
- What are Natura’s plans for Avon International? Natura is still evaluating strategic alternatives for selling Avon International.
- Who is Grupo PDC? Grupo PDC is a consumer products company with operations in Central America and Peru, having acquired Dkasa, a home care and cleaning products manufacturer and distributor, in 2019.
- How has Natura performed financially recently? After a restructuring process, Natura reported a net profit of 44.4 million reais in the first half of the year, recovering from losses of 1.793.8 million reais in the same period of 2024.
