(MENAFN- The Rio Times) Brazil's Natura is tidying up a sprawling empire built through years of acquisitions. The company has called an October 31 shareholder vote to fold Avon Industrial-its Brazilian manufacturing unit that it already owns-directly into the parent.

If approved, the merger takes effect November 1. There's no share issuance or swap, just a transfer of assets and liabilities, a small one-off legal cost, and a structure that is simpler to run.

It also formalizes moves already under way: closing the old Interlagos plant in São Paulo, concentrating production in Cajamar, and speeding the use of tax credits. At the same time, Natura is trimming far-flung operations to focus on where it leads: Latin America.

It has agreed to sell“Avon International” (Europe, Africa and Asia) to an affiliate of Regent for a nominal £1 at closing, with potential earn-outs capped at £60 million and a secured credit facility of up to US$25 million to support the carve-out.

The deal excludes Latin America and Russia, and Natura retains the Avon brand for Latin America. Separately, it is selling Central America and Dominican Republic operations to Grupo PDC for a nominal US$1 plus a US$22 million receivable; Natura will keep supplying products and license the Avon name there.


Natura Refocuses on Latin America After Global Pullback
The story behind the story is a strategic pivot. After buying Avon in 2020, Natura became a global beauty group alongside prior trophies such as Aesop and The Body Shop.

Over the last two years it has reversed course-selling noncore assets, simplifying legal entities, and concentrating capital where growth and cash generation are most resilient.

The logic is showing up in the numbers: Latin America is the engine, with stronger revenue and improving margins as the Natura-Avon integration deepens.

For investors, the Avon Industrial merger is housekeeping-no dilution, less administrative drag, cleaner cash flow. For representatives and consumers, little changes in Latin America beyond a faster, more focused company.

Outside the region, a new owner will steer Avon International once approvals are in place. The broader message is clear: Natura is shrinking to grow, swapping global sprawl for regional strength.

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