Natura &Co mulls Natura &Co Latam, Avon separation

Both entities will operate as two independent, publicly traded beauty companies.

Brazil-based cosmetics group Natura &Co opened assessments of a possible separation of its subsidiaries Natura &Co Latam and Avon.

A possible separation would lead to two independent, publicly traded beauty companies (Natura and Avon), with their business plans, independent governance, and management teams, unlocking shareholder value and delivering more tailored strategies.

In addition, both entities will have independent governance and management teams, providing shareholders with greater visibility into the fiscal performance, structure, growth prospects, and investment proposals of the respective companies.

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The assessment follows Natura &Co’s current strategy of streamlining its corporate structure and increasing the autonomy of its business units, following the divestments of Aesop and The Body Shop. Through the study, the company will be able to map out the full potential of both companies, with Natura focusing on sustainability and Avon diversifying its business.

If approved, Natura would operate with both brands in the region, lending less impact to the integration of the brands in Latin America. Likewise, Avon would benefit from sales in the Latin America region through the commercial arrangement with Natura and continue its operations in other markets.