Natura & Co has inked a deal to sell its Avon business in Central America and the Dominican Republic.
Grupo PDC, a consumer goods company with a presence in the region and Peru, is set to acquire the direct-selling beauty business for US$22m.
The business in the region is known as Avon CARD and includes Guatemala, Nicaragua, Panama, Honduras and El Salvador.
As part of the deal, Natura & Co will act as the licensor of the Avon brand and will be the supplier of finished products in these countries, the company said in a statement.
“Avon has enormous value due to its reputation, brand recognition, income generation for thousands of consultants, and deep household penetration among Latin America consumers,” said João Paulo Ferreira, CEO of Natura & Co.
“We are pleased to have found a partner with extensive experience in the Central American market who will continue to drive Avon’s prosperity in close partnership with Natura & Co.”
The deal is expected to be completed in October this year.
In August, the Brazil-based beauty owner said that it expected a sale of Avon CARD within the next 12 months, as part of efforts to streamline its business.
Natura & Co is also expecting Avon International within the same time period.
The holding company, which previously sold The Body Shop and Aesop, will continue to operate Avon in Latin America.