Natura Streamlines Avon And Doubles Down On Latin America

Brazil’s Natura is tidying up a sprawling empire built through years of acquisitions. The company has called an October 31 shareholder vote to fold Avon Industrial—its Brazilian manufacturing unit that it already owns—directly into the parent.

If approved, the merger takes effect November 1. There’s no share issuance or swap, just a transfer of assets and liabilities, a small one-off legal cost, and a structure that is simpler to run.

It also formalizes moves already under way: closing the old Interlagos plant in São Paulo, concentrating production in Cajamar, and speeding the use of tax credits. At the same time, Natura is trimming far-flung operations to focus on where it leads: Latin America.

It has agreed to sell “Avon International” (Europe, Africa and Asia) to an affiliate of Regent for a nominal £1 at closing, with potential earn-outs capped at £60 million and a secured credit facility of up to US$25 million to support the carve-out.

The deal excludes Latin America and Russia, and Natura retains the Avon brand for Latin America. Separately, it is selling Central America and Dominican Republic operations to Grupo PDC for a nominal US$1 plus a US$22 million receivable; Natura will keep supplying products and license the Avon name there.

Natura Refocuses on Latin America After Global Pullback

The story behind the story is a strategic pivot. After buying Avon in 2020, Natura became a global beauty group alongside prior trophies such as Aesop and The Body Shop.

Over the last two years it has reversed course—selling noncore assets, simplifying legal entities, and concentrating capital where growth and cash generation are most resilient.

The logic is showing up in the numbers: Latin America is the engine, with stronger revenue and improving margins as the Natura-Avon integration deepens.

For investors, the Avon Industrial merger is housekeeping—no dilution, less administrative drag, cleaner cash flow. For representatives and consumers, little changes in Latin America beyond a faster, more focused company.

Outside the region, a new owner will steer Avon International once approvals are in place. The broader message is clear: Natura is shrinking to grow, swapping global sprawl for regional strength.

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