Natura Shifts Focus, Sells Control of Avon to U.S. Firm

Brazilian cosmetics giant Natura has finalized the sale of control of Avon International to Regent LP, a U.S.-based firm, marking a significant shift in the company’s strategic direction. The transaction, initially announced in September, was completed on December 31st, 2025. However, Natura will retain full ownership of Avon’s operations and brand presence within Latin America, designating the region as its primary focus moving forward.

Crucially, the deal does not encompass Avon’s business activities in Russia, nor does it involve the transfer of the Avon brand’s economic rights or intellectual property within Latin America – these remain firmly under Natura’s control. The financial terms of the sale were notably unconventional, with Natura receiving a symbolic payment of just one pound sterling for Avon International upon completion.

Despite the sale, Natura is demonstrating continued support for Avon International through a secured credit facility. The company has committed to providing up to $25 million in credit, available for draw down until December 2026, with a five-year maturity period. This financial backing aims to facilitate a smooth transition for Avon International under its new ownership.

Natura views this divestiture as a key step in streamlining its operations and concentrating resources on its core Latin American market. The company’s recent financial performance underscores this strategy, with Brazil, Argentina, and Mexico collectively accounting for 85% of the group’s total revenue. This regional focus is intended to capitalize on established strengths and drive future growth.

While pursuing this strategic realignment, Natura has faced recent financial headwinds. The company reported losses of 1.881 billion reais (approximately $355.5 million or €307.5 million) between January and September 2025. These losses were attributed to a combination of factors, including a slowdown in the Brazilian beauty market starting in June 2025, coupled with operational instability in Argentina, which partially offset a recovery in the Mexican market.