Natura Sells Avon Operations In Six Countries For A 'Symbolic Value' Of $1 And Strengthens Focus On Integration In Latin America

Natura Sells Avon Operations In Six Countries For A ‘Symbolic Value’ Of $1 And Strengthens Focus On Integration In Latin America

Written by Geovane Souza

Published on 15/09/2025 at 15:56

O comunicado formal enviado à CVM detalha que a Avon CARD será vendida por US$ 1,00, acrescida do recebível de US$ 22 milhões no fechamento.

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Agreement Provides for Transfer of Avon CARD to PDC Group for Symbolic Value, Plus US$ 22 Million in Receivables, and Natura Will Remain as Supplier and Licensee of the Brand in the Region.

Natura announced on Monday, the 15th, a binding agreement to sell the operations of Avon CARD in Central America and the Dominican Republic to PDC Group for US$ 1, with an additional payment at closing of a receivable of US$ 22 million related to Avon Guatemala for Natura’s subsidiary in Mexico. The move is part of the company’s optimization and simplification strategy initiated in 2022.

The transaction encompasses Avon’s operations in Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic, grouped under the designation Avon CARD. PDC Group is described as a consumer goods company operating in Central America and Peru, indicating familiarity with the markets where the brand will continue to be present.

According to the disclosed terms, Natura will continue supplying finished products to the region and will act as licensor of the Avon brand, ensuring continuity of the portfolio and commercial relationship. The closing depends on local corporate reorganization and is expected by October 30, 2025.

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What Was Announced by Natura and Who Is the Buyer

The formal announcement sent to the CVM details that Avon CARD will be sold for US$ 1.00, plus the receivable of US$ 22 million at closing, and that Natura has entered into agreements to continue licensing the brand and s upplying products to the new owner in the region. São Paulo, September 15, 2025 is the date of the relevant fact.

The PDC Group takes over operations in six countries, maintaining Avon’s presence in retail and direct selling, while Natura retains brand governance through licensing. This structure typically reduces fixed operating costs, preserving scale and distribution.

According to Reuters, the arrangement aligns with the simplification plan aimed at making the holding company lighter and more focused on the Latin America, emphasizing integration between Natura and Avon on the continent.

Why the Sale for US$ 1 Is Not Just Symbolic

Businesses sold at nominal value often come with financial conditions that capture value in other ways. Here, the receivable of US$ 22 million serves as an immediate counterbalance and reduces exposure to working capital risks in the region.

In addition to the cash to be received, Natura maintains recurring revenue as a supplier and licensor, monetizing the Avon brand without carrying the local operational structure. In reorganization scenarios, this model can improve margin, invested capital, and predictability.

In the background, the company continues to “explore strategic alternatives” for Avon International (operations outside Latin America), classified as a held-for-sale asset since the second quarter. This includes possibilities for sale, partnership, or other forms of divestment.

Impact for Latin America and Next Steps

The operation in Latin America remains intact and the integration between the brands continues. Natura emphasizes that the sale of Avon CARD supports the effort to optimize operations and simplify business, allowing focus on the group’s main market.

From a financial perspective, cash generation in Latin America has been a pillar. In the first half of 2025, the company reported R$ 408 million in cash generated in that region, signaling resilience and operational execution.

The closing of the sale is expected by October 30, 2025, subject to the conclusion of the corporate reorganization of the entities that compose Avon CARD. Until then, the company must follow regulatory procedures and prepare the logistical and contractual transition with the buyer.

We Want to Hear from You. Selling for US$ 1 was a smart move to unlock value or a sign of weakness of the asset in the region? Is the partnership with PDC Group likely to strengthen Avon’s presence or could it dilute the identity built over decades? Leave your comment and let us know how you see this move.

Natura Sells Avon Operations In Six Countries For A ‘Symbolic Value’ Of $1 And Strengthens Focus On Integration In Latin America

Agreement Provides for Transfer of Avon CARD to PDC Group for Symbolic Value, Plus US$ 22 Million in Receivables, and Natura Will Remain as Supplier and Licensee of the Brand in the Region.

What Was Announced by Natura and Who Is the Buyer

Why the Sale for US$ 1 Is Not Just Symbolic

Impact for Latin America and Next Steps

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Natura Sells Avon Operations In Six Countries For A ‘Symbolic Value’ Of $1 And Strengthens Focus On Integration In Latin America

Agreement Provides for Transfer of Avon CARD to PDC Group for Symbolic Value, Plus US$ 22 Million in Receivables, and Natura Will Remain as Supplier and Licensee of the Brand in the Region.

What Was Announced by Natura and Who Is the Buyer

Why the Sale for US$ 1 Is Not Just Symbolic

Impact for Latin America and Next Steps

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Egypt wants to draw 10 million cubic meters of water from the Nile per day into the desert, irrigate a new agricultural frontier, and build a city where there is currently only sand.

BRICS is preparing a payment system inspired by the Brazilian PIX that will allow direct transactions between countries using national digital currencies without relying on the dollar or Western banks as intermediaries.

Ethiopia has banned gasoline and diesel cars, placed over a hundred silent electric buses on the streets of Addis Ababa, and now aims for half a million electric vehicles by 2030, all powered by Africa’s largest dam and a courage that few countries have shown.

A view from space, an image made by NASA shows the impressive Richat Structure, a geological formation located in the Sahara Desert, also known as the “Eye of the Sahara.”

A brand that has been manufacturing motorcycles since 1901 launches its first electric model, and the price shocked the world: $3,000, weighing only 124 kg and accelerating from 0 to 60 km/h in 3.7 seconds…

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