Natura &Co talks over potential Avon sale outside of Latin America gather pace

Brazilian cosmetics giant Natura &Co is reportedly exploring selling Avon’s operations outside Latin America. Speculation is mounting over the potential shakeup, as Natura &Co is understood to be in talks about a possible sale, partnerships, or a spinoff.

Natura &Co has been investigating what to do with Avon outside of the LATAM region for several months, but could be moving a step closer following discussions with asset manager IG4. 

When Personal Care Insights contacted IG4, a spokesperson said the company was not commenting at this time.  

The reports about a possible sale closely follow Natura &Co reaching a deal with Avon Products to pay US$34 million in cash to the company’s debtors’ estate as part of the company’s Chapter 11 bankruptcy process in the US. In August 2024, Avon Products filed for Chapter 11 bankruptcy protection at the US Bankruptcy Court of the District of Delaware, US.

Streamlining strategy

Natura &Co has made a series of moves over the last year or more to simplify its structure. In April 2023, the company agreed that L’Oréal would acquire Aesop, opening a new chapter of the luxury beauty brand’s growth story after a decade under Natura &Co’s stewardship.

L’Oréal finally signed the acquisition agreement for an enterprise value of US$2.525 billion.

Later the same year, Natura &Co agreed to sell to European private equity business Aureliu.

Negotiations with IG4 are at an early stage, but further announcements are expected later this year.