PARIS — Natura Cosméticos has entered into a binding agreement with Grupo PDC, a consumer goods company, to sell the Avon business located in Guatemala, Nicaragua, Panama, Honduras, El Salvador and the Dominican Republic, or CARD.
Avon CARD is to be sold by its Brazilian parent for a nominal value of $1, plus payment upon closing of a receivable of $22 million by Avon Guatemala to Natura’s owned subsidiary in Mexico.
“The transaction will support Natura’s effort to streamline its operations and simplify its businesses, as well as position it to continue focusing on the integration of Natura and Avon in Latin America,” Natura said in a statement of material fact on Monday.
As part of the deal, Natura is in agreements to continue supplying finished goods to Avon CARD and be the licensor of the Avon brand in the region.
The transaction is expected to close by Oct. 30, according to the company.
Courtesy
Natura reiterated that it continues to explore strategic alternatives to its Avon International business, which is officially on the block.
On Aug. 12, concurrent with the release of its second-quarter results, Natura said: “Strategic alternatives for Avon International continue to progress, and all necessary requirements were met to classify the business unit as an asset held for sale.
Avon Central America and the Dominican Republic, which formerly was under Natura & Latam, was reclassified as an asset for sale, as well.
Natura has — on and off — been exploring options for Avon’s international business.
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