Natura &Co’s Board of Directors is assessing a possible separation from Avon. This potential separation would create two independently listed and publicly traded beauty companies, which would align with the group’s previously announced strategy to simplify operations and corporate structure, strengthen brand autonomy and unlock further shareholder value.
This separation would also create two independent business plans, governance and management teams. For Natura, the brand mission would continue to be a historic and clear focus on sustainability and would maintain the company’s right to operate the Avon brand in Latin America. Avon would operate as a geographically diversified business with a heritage of innovation in beauty and personal care that works to create a better world for women.
With this study, Natura &Co hopes to discover the full potential of both companies and deliver greater visibility into the financial performance, structure, growth prospects and investments of the two separate brands. Separation would not impact the integration of the two brands within Latin America, as Natura would continue to operate both within the region.
“There can be no assurance that any separation will ultimately be recommended by the Board of Directors,” the company said in a statement. “Completion of a separation would be subject to various conditions, including final approval from the Board of Directors and consent from the majority of shareholders, among others.”