Natura & Company is considering spinning off Avon International as an independent publicly traded beauty company to further increase shareholder value.
The Brazilian conglomerate’s announcement on Monday is in line with its recent strategy to simplify its corporate structure and follows the recent sales of Aesop and The Body Shop.
Natura & Company has sold The Body Shop to Aurelius in a deal that values the British retailer at £207m. Prior to that, the company sold Aesop to L’Oréal in a deal that values the personal care brand at $2.5 billion.
The company said the structure of the potential transaction is still being evaluated, but is expected to result in the creation of two separate and independent entities (Natura and Avon).
The potential separation will not affect the integration of the brands in Latin America, as Natura will continue to operate with both brands in the region. As a result, Avon will benefit indirectly from sales in Latin America through its commercial agreement with Natura.
Natura & Co. does not own Avon US
“There can be no assurance that the separation will ultimately be recommended by the board of directors. Completion of the separation is subject to various conditions, including final board approval and majority shareholder consent,” Natura said in a statement. mentioned in.
“While Natura & Co.’s management conducts a strategic assessment, the company will continue to implement Avon’s turnaround strategy and integrate Natura and Avon’s operations in Latin America.”