Yesterday, according to report, Natura Cosméticos has signed a binding agreement with Grupo PDC, a consumer goods company, to divest its Avon operations in Central America and the Dominican Republic (CARD). The deal covers Avon businesses in Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic.
Under the agreement, Natura will transfer Avon CARD to Grupo PDC for a nominal $1, along with the repayment of a $22 million receivable owed by Avon Guatemala to Natura’s subsidiary in Mexico. Natura said the transaction will help streamline operations, simplify its business structure, and allow greater focus on integrating the Natura and Avon brands in Latin America.
As part of the deal, Natura will continue to supply finished goods to Avon CARD and retain brand licensing rights in the region. The transaction is expected to close by October 30.
Meanwhile, Natura confirmed it is still exploring strategic alternatives for Avon International, which has been officially classified as an asset held for sale. In August, alongside its second-quarter results, the company noted that all requirements had been met for reclassification, including Avon CARD, which previously sat under Natura & Latam.
Natura has periodically evaluated options for its international Avon business, and this latest divestiture marks another step in reshaping its global portfolio.
