São Paulo–based Natura &Co has agreed to sell its Avon International operations in Europe, Africa and Asia to U.S. private equity firm Regent for a nominal £1 (US$1.36).
Excluding Russia and all Latin American assets, the deal retains the Avon brand and is expected to close in Q1 2026, subject to regulatory approvals.
While the initial payment is symbolic, Natura may receive up to £60 million in contingent payments based on future performance and specific liquidity events.
Natura will convert most Avon International debt into equity and transfer any remaining liabilities to Regent without compensation. The company will also extend a US$25 million credit line, repayable over five years and available for one year after closing.
This sale concludes Natura’s three-year “simplification” strategy launched after its $2 billion Avon acquisition in January 2020 faltered.
Avon International posted nine straight quarters of revenue declines and burned through R$1.7 billion ($270 million) in H1 2025. Avon Products Inc. filed for Chapter 11 bankruptcy in August 2024, carrying over US$1.3 billion in debt and talc-related liabilities.
Natura’s Asset Sales Refocus Strategy on Latin America
Natura has now divested three non-core assets: Aesop to L’Oréal for $2.5 billion in 2023, The Body Shop to Aurelius Group for £207 million, and Avon International to Regent.
These moves helped reduce its debt-to-EBITDA ratio from 3.5× to 2.8× and return to profitability, reporting net income of R$195 million ($36 million) in Q2 2025. Shares jumped 15 percent on the announcement.
In its Latin American core, Natura generated R$408 million in cash and R$445 million in net income in H1 2025, with a recurring EBITDA margin of 14.7 percent, thanks to unified distribution channels across Brazil, Mexico and Argentina.
For Regent, the deal offers a chance to revitalize Avon’s door-to-door heritage in Europe, Africa and Asia. Known for turning around brands such as Bally and TechCrunch, Regent will focus on operational restructuring and digital transformation.
Analysts say the transaction reflects a shift from global portfolios toward market specialization, allowing Natura to strengthen its leadership in Latin America while Regent addresses underperforming regions overseas.
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