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Brazil’s Natura announced Monday that it has an agreement with L’Oreal for that to happen Buy a cosmetic brand Aesop – who operates Avon and The Body Shop – for $2.530 million.
The amount will be paid at the end of the transaction, which, according to Valor Económico media, This should happen at the end of the third trimester.
The decision comes after months in which the South American giant began considering a partial or complete sale of the company, as well part of A broader review being conducted by Fabio Barbosa, who took over as CEO last year has suggested it Simplify the company structure and reduce costs.
So he assessed the possibility of them entering the property LVMH, L’Oreal and Shiseido.
“With a strong financial structure and a low leveraged balance sheet, Natura & Co exercises strict financial discipline, “She will be able to sharpen her focus on her strategic priorities, in particular our investment plan in Latin America,” Barbosa said in a statement.
In addition, the operation also aims to achieve the geographical optimization of Avon International and the continuous improvement of The Body Shop.
“Aesop benefits from all the current updates and will help L’Oréal unlock its huge growth potential, especially in China and in the travel retail business.” L’Oréal CEO Nicholas Hieronymus said in the statement.
Bank of America and Morgan Stanley worked with Natura on the sale.
Natura Brazilian plans to grow and land in new countries in the midst of a global crisis
Times of change
For months, the company has been honest that it is going through complex moments as a result of unfavorable macroeconomic and inflationary conditions, as noted in its Q3 2022 income statement.
By that date, the company had already accumulated three consecutive quarters of losses, During that period, net liabilities amounted to 108 million US dollars, compared to profits of 53 million US dollars recorded in the same period of the previous year.
The above happens in the context of by mid-2022, Natura began a process to reorganize its structure to reduce operating costs and thus make it more profitable; This led not only to a refocusing of the business, but also to the departure of Roberto Marquez, at the time President and CEO of the company who was replaced by Barbosa.
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