Brazilian cosmetics group Natura has reached an settlement to promote Avon CARD, the collective title for the wonder label’s operations in Central American and the Dominican Republic, to client items firm Grupo PDC, the businesses introduced on Monday. The buy worth was $1, adopted by a cost of $22 million to be obtained upon closing.
The sale can be accomplished in October relying on “corporate procedures of the companies in the region,” in accordance to the discharge, and contains Avon’s companies in Guatemala, Nicaragua, Panama, Honduras, El Salvador and the Dominican Republic.
It follows a sequence of divestments by the Brazilian group, who beforehand offered each Aesop and The Body Shop as a part of an ongoing simplification technique. Natura beforehand categorised Avon International as “held for sale” in August.
As per the deal, Natura will act as each the licensor and provider of completed merchandise for Avon inside Central America and the Dominican Republic. Natura and Avon’s ongoing operations inside Latin America won’t be affected.
The Brazilian firm’s shares rose by simply over 3 % following the announcement.
Learn extra:
Natura Swings Back to Profit, Looks to Sell Avon International
Net revenue for the three months by the tip of June landed at $35.8 million, reversing the $157 million actual web loss it logged from the identical interval final 12 months.
Sign up to The Business of Beauty e-newsletteryour complimentary, must-read supply for the day’s most vital magnificence and wellness information and evaluation.