The potential move would support the group's
strategy of simplifying operations, strengthening brand
autonomy and unlocking shareholder value
SÃO PAULO, Feb. 5, 2024
/PRNewswire/ -- Natura &Co (NYSE – NTCO; B3 – NTCO3) announces
that its Board of Directors has authorized its management to assess
a possible separation of Natura &Co Latam and Avon to unlock
further shareholder value.
A separation would result in two independent, publicly traded
beauty companies (Natura and Avon), with unique business plans,
independent governance, and management teams, better equipped to
pursue more tailored strategies to drive long-term shareholder
value:
- Natura: a leading beauty company with historically clear focus
on sustainability, owning and operating the Natura brand worldwide
and with the right to operate the Avon brand in Latin America and;
- Avon: the owner of the Avon brand, operating a geographically
diversified business with a strong innovation heritage in beauty
and personal care and driven by an intrinsic purpose of creating a
better world for women.
This assessment is consistent with Natura &Co's ongoing
strategy of simplifying its corporate structure while providing
increased autonomy to its business units and follows the recent
divestments of Aesop and The Body Shop.
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.
Natura would continue to operate with both brands in the region,
so the potential separation would not impact the integration of the
brands in Latin America. In turn,
Avon would indirectly benefit from the sales in Latin America through a commercial arrangement
with Natura, while continuing its operations in other markets
outside Latin America.
There can be no assurance that any separation will ultimately be
recommended by the Board of Directors. Completion of a separation
would be subject to various conditions, including final
approval from the Board of Directors and consent from the majority
of shareholders, among others.
While the strategic assessment is being conducted by Natura
&Co´s management, the company continues to implement Avon´s
turnaround strategy and integrate the businesses of the Natura and
Avon brands in Latin America.
About Natura &Co:
Natura &Co is a global purpose-driven group uniting Natura
and Avon, engaging customers through 7 million
dedicated Consultants and Representatives, 900 stores and
franchises, and 22,000 employees.
We believe in promoting real positive economic, social,
and environmental impact. We believe that the world does not
need another big company. The world needs symbols of
change capable of blazing new trails and inspiring others to
follow. We believe in the power of cooperation, co-creation,
and collaboration for a better way of living and doing
business.
We are Natura &Co.
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities. Any offers,
solicitations or offers to buy, or any sales of securities will be
made in accordance with the registration requirements of the
Securities Act of 1933, as amended, or an exemption therefrom. This
communication may contain forward-looking statements which reflect
Natura &Co's current view on future events and financial and
operational development. Words such as "intend", "expect",
"anticipate", "may", "believe", "plan", "estimate" and other
expressions which imply indications or predictions of future
development or trends, and which are not based on historical facts,
are intended to identify forward-looking statements.
Forward-looking statements inherently involve both known and
unknown risks and uncertainties as they depend on future events and
circumstances. Forward-looking statements do not guarantee future
results or development and the actual outcome could differ
materially from the forward-looking statements. Any forward-looking
statements contained in this communication speak only as at the
date hereof, and Natura &Co does not assume or undertake any
obligation or responsibility to update any forward-looking
statement to reflect events or circumstances after the date hereof
or to reflect the occurrence of unanticipated events.
View original
content:https://www.prnewswire.co.uk/news-releases/natura-co-to-explore-possible-separation-of-natura-co-latam-and-avon-into-two-independent-listed-companies-302053788.html