Natura Cosméticos has entered into a binding agreement to sell its Avon International business to an acquisition vehicle affiliated with Regent.
The sale will not include the Avon Russian market or the brand and its operations in the Latin American region, the Brazilian beauty company said in a security filing on Thursday.
Natura is to receive a nominal consideration of 1 pound when the deal closes. Then it will get contingent payments based on future results and certain liquidity events that are limited to 60 million pounds.
The company reiterated that it continues to explore strategic alternatives for Avon’s business in Russia.
Avon’s Adapt Dream Cream.
Courtesy of Avon
“The Avon International Sale [in addition to the sale of the Avon business in the Central America region] is another important milestone in Natura’s effort to streamline its operations and continue its strategy to focus on its core business in Latin America,” the company said.
As previously reported, on Monday Natura said it had entered into a binding agreement with Grupo PDC, a consumer goods company, to sell the Avon business located in Guatemala, Nicaragua, Panama, Honduras, El Salvador and the Dominican Republic, or CARD.
As part of that deal, Natura agrees to continue to supply finished goods to Avon CARD and be the licensor of the Avon brand in the region.
Natura had — on and off — been exploring options for Avon’s international business.