Natura divest Avon Central America for USD 22M to simplify business operations
This move exemplifies Natura’s targeted portfolio rationalization and prioritization of core assets in Latin America, critical steps in its broader corporate revitalization plan.
BRAZIL -Brazilian beauty giant Natura has agreed to divest Avon’s Central American operations for a nominal fee plus a USD 22 million receivable payment, as part of its ongoing effort to streamline and simplify its business structure.
The transaction encompasses Avon’s activities in Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic, collectively referred to as Avon CARD.
The deal with Grupo PDC includes a symbolic USD 1 price for the business, with the USD 22 million representing a receivable from Avon Guatemala to Natura’s wholly owned subsidiary in Mexico, payable upon closing.
Natura emphasized that the sale supports its strategy to optimize operations and focus on the integration of Natura and Avon throughout Latin America.
Despite the divestiture, Natura will continue to supply finished products to Avon CARD and retain licensing rights for the Avon brand in the region.
The company is also actively exploring strategic alternatives for its Avon International unit, which manages Avon’s businesses outside Latin America and has been classified as an asset held for sale.
Following the announcement, Natura’s shares rose over 3%, reflecting positive investor sentiment toward the company’s simplification and turnaround efforts.
Analysts noted the deal could yield approximately USD 11 million in savings and improve market perception ahead of further potential sales of Avon International assets.
This move is part of a broader restructuring by Natura, which has previously sold brands like Aesop and The Body Shop as it seeks to concentrate resources on its core businesses and recover profitability following its acquisition of Avon in 2019.
Natura, a Brazilian global personal care cosmetics group, recently reported a strong financial performance in Q2 2025, posting a net income of approximately USD 81.5 million (BRL 445 million) driven predominantly by robust growth in its Latin American operations.
This marked a significant recovery from a net loss of BRL 859 million (around USD 158 million) in the same quarter of the previous year.
Solid revenue growth in its core Latin American markets, particularly Brazil, where Natura Brazil’s revenue increased by 10.3%.
Hispanic markets also showed strong growth, rising by 17.8% in the quarter.
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