Natura & Co has announced that its board has authorised an exploration of separating its Natura business from Avon. The proposal, if agreed, would see all but the Latin America operations of Avon spun off into a new separate company which would conduct business in all other countries. Avon would indirectly benefit from the sales in Latin America through a commercial arrangement with Natura. The action would result in there being two separate publicly traded companies.
The Natura & Co board said in a statement: “The aim of this study is to unlock the full potential of both companies, which have distinct geographical footprints and serve different beauty consultants and consumers. The two standalone entities would each have independent governance and management teams. This potential separation would also afford shareholders greater visibility into the financial performance, structure, growth prospects, and investment theses of the respective companies.”
This latest move follows Natura’s sale of The Body Shop to Aurelius having acquired it from L’Oreal in 2017. It also sold Aesop last year.
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