Natura &Co will resume studies for options regarding its Avon business outside of Latin America, the Brazilian beauty group said in a securities filing released Wednesday.
That had been put on hold in August, when Avon Products Inc., a U.S.-based nonoperational holding company, filed for Chapter 11 bankruptcy in a Delaware court amid its mounting pile of debt linked to talc-related lawsuits that alleged its products caused cancer.
Natura said in the filing that the U.S. court overseeing the bankruptcy proceedings approved the settlement agreement between Natura and Avon Products creditor, and also the deal regarding the sale of Avon operations through a credit bid of $125 million.
Natura said that possibilities for the Avon business outside of Latin America could include “a potential separation, sale or partnership.”
Avon’s Hydramatic Shine Lipstick.
Courtesy
In February, Natura said it was mulling whether to spin off Avon international as a separate publicly traded beauty company to unlock further shareholder value. The announcement fit in with its then-recent strategy of simplifying its corporate structure and followed on from the divestments of Aesop and The Body Shop.
L’Oréal purchased Aesop last year, when the Australian brand was valued at more than $2.5 billion. In 2023, Natura also sold The Body Shop to private equity firm Aurelius Investment in a deal valuing the chain at 207 million pounds.
Avon’s business in the U.S., which is owned by LG Household & Health Care Ltd., would not be part of any deal. It is not affiliated with any other Avon entity and was not part of the Chapter 11 proceedings.
