Natura & Co. executives They are considering splitting Avon and Natura into separate companies.
Natura's board of directors has authorized executives to consider separating Avon and Natura.
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Natura & Co. said: Late Monday, it said its executives were exploring splitting Natura and Avon into publicly traded beauty products companies to “unlock more value for shareholders.”
Natura and Avon will have “unique business plans and independent governance and management teams that are better equipped to pursue more tailored strategies to achieve long-term shareholder value,” the Brazilian company said. natura ntco,
It purchased Avon in a deal that closed in 2020.
The Natura brand will have a “clear focus” on sustainability, and will operate the Natura brand worldwide as well as the right to operate the Avon brand in Latin America.
Avon will be the owner of the Avon brand and will be a “geographically diverse company” focused on “creating a better world for women,” the company said.
The two companies “have distinct geographic footprints and serve different beauty consultants and consumers,” Natura said.
This assessment is consistent with Natura & Co.'s strategy. “Simplifying its corporate structure while providing more autonomy to its business units,” it comes at a time when the cosmetics company recently sold Aesop to French company L'Oreal SA, and The Body Shop to Aesop. Private equity firm.
Last week, Natura said its board had approved a plan to end the company's secondary listing of American depositary receipts on the New York Stock Exchange, while retaining its primary listing on the São Paulo Stock Exchange, where the “vast majority” of trading activity is concentrated. .
Following Monday's potential spin-off news, prices for Natura ADRs rose 2% in extended trading, after ending the regular trading day down 0.2%.
