By Brazil Stock Guide – Natura Cosméticos S.A. (B3: NTCO3) said on Sept. 17 it signed a binding agreement to sell its subsidiary Natura &Co UK Holdings Limited, which controls Avon International, to an acquisition vehicle affiliated with private equity firm Regent. The deal excludes Avon’s Latin American and Russian businesses and calls for a symbolic £1 ($1.20) payment at closing, plus potential earn-outs and contingent payments of up to £60 million ($72 million) tied to performance targets and liquidity events.
Most intercompany loans owed by Avon International to Natura will be capitalized before closing, while the remainder will be transferred without consideration after post-closing conditions are met. Natura will also provide a secured credit line of up to $25 million (R$135 million), available for one year after closing and maturing in five years. The transaction is expected to close in the first quarter of 2026, pending regulatory approvals.
Global reorganization in motion
The Avon International sale extends Natura’s global restructuring. In 2023, the company sold luxury brand Aesop to L’Oréal for $2.5 billion. Last week, it agreed to sell Avon Central America and the Dominican Republic to Grupo PDC for a symbolic payment plus a $22 million receivable. With the Avon International sale, only the Russian operations remain under strategic review.
The price is symbolic, but the sale removes a source of financial strain. Natura’s 2020 acquisition of Avon expanded global reach but added costs and complexity, pressuring margins and leverage. The new deal aims to streamline operations and restore profitability.
Latin America at the core
The move strengthens Natura’s plan to concentrate investment in Latin America, where it has strong brands, entrenched distribution and leading market share in direct sales. The region accounts for most of Natura’s revenue and margins, unlike Avon International, which struggled with growth and profitability in mature and fragmented markets.
Analysts see the transaction as another attempt to unlock value after years of aggressive expansion and difficult integration. The outcome could create room for dividend resumption and a stronger cash position, under investor pressure for focus and efficiency.
New Owner
The buyer, Regent, is a Los Angeles–based private equity firm led by investor Michael Reinstein. The group specializes in acquiring consumer, retail, media and technology businesses, often through carve-outs and restructurings. Its portfolio spans more than 30 companies worldwide, including Swiss fashion label Bally, French childrenswear brand Petit Bateau, German luxury house Escada, educational technology provider Scantron, lingerie maker DIM Paris, and media titles such as PC World and Macworld. Regent’s strategy focuses on unlocking value in underperforming or overlooked assets.
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