Natura &Co announces that it expects to close today the acquisition of Avon Products, Inc. and appoint the new senior leadership team to drive the company’s next phase of growth.
The landmark transaction creates the world’s fourth-largest pure-play beauty company. According to the company press release:
- This marks a major new step in building a purpose-driven group committed to a different way of doing business. Natura &Co, which trades on the B3 stock exchange in Sao Paulo, also expects to begin trading through ADRs on the NYSE (NTCO) on January 6.
- The combination of Avon, Natura, The Body Shop and Aesop significantly amplifies the reach of a multi-channel, multi-brand group that will be an unparalleled leader in the direct-to-consumer space, bringing beauty to over 200 million consumers across the world anytime, anywhere, every day through multiple channels, touchpoints and iconic brands.
- Natura &Co will hold leading positions in relationship selling, on and offline, through both Avon and Natura, with over 6.3 million Consultants and Representatives.
- The group will also have a strong position in retail with more than 3,000 stores and an expanded digital presence across all the companies.
- Natura &Co will have combined annual gross revenues of over US$10 billion, more than 40,000 associates, a broad and complementary product portfolio across key categories and a global footprint in over 100 countries.
“Natura has just finished celebrating its 50th anniversary, and there could be no better way to open this next chapter in our history than to welcome Avon into our family,” said Luiz Seabra, co-founder of Natura. “We are united by a shared vision and a passion for beauty and relationships, and together, we will be an even stronger force for good, striving to build a fairer and more beautiful world.”
Natura &Co also announced the appointment of organizational structure and management team, subject to applicable corporate approvals:
Roberto Marques, who became executive chairman of the Board of Directors of Natura &Co in 2017, will also serve as group chief executive officer. Marques joined Natura Board of Directors about four years ago. During this period, he championed the global, multi-channel, multi-brand approach, leading the acquisition of The Body Shop in 2017 and now the combination with Avon. He has extensive global experience and a strong transformation track record in the consumer goods industry, having held, prior to Natura &Co, various senior leadership roles at Johnson & Johnson and Mondelez International for over 30 years.
Marques will continue to head a diverse and experienced Group Operating Committee (GOC), which includes the CEOs of each of the four businesses and brands as well as key functional positions. The four business units have been organized based on the Group’s strategic priorities at this stage:
- Natura &Co Latin America, encompassing responsibility for the P&Ls of Natura, Avon, The Body Shop in the region and Aesop in Brazil. This role will also have responsibility for the innovation and stewardship globally of the Natura brand
- Avon (excluding Latin America), responsible for the P&L of all the market clusters in Europe, Africa, Middle East and Asia. This role will also be responsible for the Avon brand innovation and stewardship globally. Additionally, in the future, it will have responsibility for the Natura brand’s international expansion outside of Latin America
- The Body Shop
- Aesop
Joao Paulo Ferreira is assuming the role of CEO Latin America of Natura &Co. The new organization in Latin America will allow the group’s four brands to maximize their potential, capture significant synergies and accelerate growth across their footprint and multi-channel presence. Ferreira successfully led Natura’s revitalization of its direct selling model since becoming CEO in October 2016, energizing the new commercial model and digitalization. He had previously been vice-president of Operations and Logistics and vice-president of Commercial at Natura after a long career at Unilever.
Angela Cretu is appointed CEO of Avon, responsible for the business outside of Latin America and for the oversight of the Avon brand globally. A native of Romania, Cretu has over 20 years of experience at Avon in various senior executive roles, most recently as group vice president and general manager, Central Europe, responsible for 18 countries. Before that she successfully led the Eastern Europe and Africa/Middle East clusters and Global roles. She has a passion for Avon, its employees, Representatives and customers. On top of her recognized management skills, international perspective and industry experience, she has been deeply involved in Avon’s drive for women’s economic empowerment, all of which will be major assets to take Avon and Natura forward.
Jan Zijderveld, Avon’s chief executive officer, will step down following the completion of the deal.
David Boynton will remain CEO of The Body Shop, continuing driving the transformation and brand revitalization which is underway and already yielding positive results. He was formerly CEO of Charles Tyrwhitt and CEO for Western Markets for L’Occitane.
Michael O’Keeffe, CEO of Aesop since 2003, also remains in his current position, driving the high growth of this unique and prestigious brand and, with the support of the rest of the group, transforming it into a true triple bottom line business.
Roberto Marques, executive chairman of the Board of Directors and Group CEO of Natura &Co, commented: “Alongside the experienced, diverse and international senior management team we are announcing today, I am proud and privileged to lead Natura &Co’s next steps in its journey. Our aspiration is to build not just the best beauty company in the world, but the best beauty company FOR the world. With the addition of Avon, we have created a family of companies with unrivaled direct-to-consumer reach and a formidable platform for growth. I am looking forward to working together to drive further our triple bottom line approach and write the next chapter in our journey.”
