By Brazil Stock Guide – Natura Cosméticos S.A. (B3: NTCO3) completed the sale of its Avon International business on Dec. 31, concluding a long-awaited exit from an asset that had become emblematic of the group’s strategic overreach outside Latin America. The transaction transfers ownership of Natura &Co UK Holdings Ltd., the holding company for Avon International, to U.S. investor Regent LP, formally closing a chapter that began with a much more ambitious — and costly — global bet.
At the center of the operation lies a stark financial contrast. Natura sold Avon International for a symbolic £1, effectively writing off an asset acquired in 2019 in a stock-based transaction valued at roughly $2 billion at the time. The disposal crystallizes years of operational drag, restructuring costs and capital consumption tied to Avon’s international footprint, while allowing the Brazilian group to sever exposure to a business that consistently underperformed expectations.
The divestment excludes both the Russian market and all Avon brand operations in Latin America. Natura retains full ownership of the Avon brand in the region, including economic rights and intellectual property — a deliberate carve-out that preserves one of its strongest consumer franchises while discarding a loss-making international platform. The structure underscores a strategic pivot toward regional focus rather than global scale.
Although Natura did not provide funding to Avon International during the fourth quarter of 2025, the transaction includes a limited financial safety net. As previously disclosed, the company reaffirmed a secured credit line of up to $25 million in favor of Avon International. The facility carries a five-year maturity from first drawdown and may be accessed until Dec. 31, 2026, subject to predefined conditions, tempering execution risk for the buyer without reopening the balance sheet to sustained cash outflows.
The closing marks a critical milestone in Natura’s operational simplification effort. By exiting Avon International at a nominal price, management prioritizes strategic clarity over sunk-cost recovery, reduces complexity and redirects capital and attention toward Latin America, where margins, brand equity and growth visibility remain structurally stronger. For investors, the sale formalizes a reset: the end of a costly global experiment and a renewed focus on disciplined capital allocation.
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