Natura &Co Announces Successful Closing of Follow-On Equity Offering

Rhea-AI Summary

Natura &Co (NTCO) announced the successful closing of its public follow-on offering, raising approximately R$5.6 billion (US$1 billion) by distributing 121.4 million common shares at R$46.25 each. This offering, the largest in Latin America for a consumer products business, boosts the company's international shareholder base and enhances liquidity for its ADSs. The proceeds will help optimize the capital structure, supporting strategic investments in the integration of Avon, digitalization, and geographic expansion. The transaction aims to accelerate growth over the next three years.

Positive

• Raised R$5.6 billion (US$1 billion) through a public follow-on offering.
• Increased international shareholder base and liquidity of ADSs.
• Funding will support key strategic investments including Avon integration and digitalization.

Negative

• None.

SÃO PAULO, Oct. 15, 2020 /PRNewswire/ -- Natura &Co (NYSE: NTCO and B3: NTCO3) today announced to its shareholders and the market in general the successful closing of its public follow-on offering for primary distribution of 121,400,000 common shares in total, at the price per share of R$46.25 (US$16.4591 per ADS), resulting in an aggregate amount of R$5,614,750,000.00 (corresponding to approximately US$1 billion), occurring simultaneously in Brazil and abroad, of which:

• 96,331,000 shares were distributed in Brazil, by means of a public offering with restricted placement efforts pursuant to CVM Ruling 476 of 2009, and
• 25,069,000 shares were distributed abroad, in the form of American Depositary Shares (ADSs), represented by American Depositary Receipts, pursuant to an effective registration statement filed with the U.S. Securities and Exchange Commission.

This transaction increases the Group's international shareholder base, with strong support from existing shareholders as well as new investors. It increases the liquidity of Natura &Co's ADSs, allows the group to optimize its capital structure through deleveraging and enables key strategic investments that will accelerate growth over the next three years, primarily:

• The Avon integration and turnaround
• Digitalization of the business
• Geographic opportunities
• 2030 Commitment to Life agenda

Roberto Marques, Executive Chairman of the Board of Directors and Group CEO, stated: "We are very pleased to have successfully completed this capital raise, which we believe attests to the strength and attractiveness of Natura &Co and the relevance of its strategy. Our share offering was the largest SEC-registered transaction by a consumer products business this year, and the largest-ever in the consumer space in Latin America.  The capital increase will allow us to build on our current strong business momentum and accelerate our growth by advancing on our strategic priorities, while also optimizing our balance sheet."

Banco Morgan Stanley S.A., Bank of America Merrill Lynch Banco Múltiplo S.A., Banco Bradesco BBI S.A., Citigroup Global Markets Brasil, Corretora de Câmbio, Títulos e Valores Mobiliários S.A. and Banco Itaú BBA S.A. acted as underwriters of the offering in Brazil. Morgan Stanley, BofA Securities, Bradesco Securities, Inc., Citigroup and Itau BBA USA Securities, Inc. acted as underwriters of the international offering.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Natura &Co

Natura &Co is a global, purpose-driven, multi-channel and multi-brand cosmetics group which includes Avon, Natura, The Body Shop and Aesop. Natura &Co posted net revenues of R$ 14.4 billion in 2019 and R$32.9 billion on a proforma basis, including Avon. The four companies that form the group are committed to generating positive economic, social and environmental impact. For 130 years Avon has stood for women: providing innovative, quality beauty products which are primarily sold to women, through women. Founded in 1969, Natura is a Brazilian multinational in the cosmetics and personal care segment, leader in direct sales. Founded in 1976 in Brighton, England, by Anita Roddick, The Body Shop is a global beauty brand that seeks to make a positive difference in the world. The Australian beauty brand Aesop was established in 1987 with a quest to create a range of superlative products for skin, hair and the body.

FORWARD-LOOKING STATEMENTS

This press release includes "forward-looking statements" within the meaning of the U.S. federal securities laws. Statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "continues," "expect," "estimate," "intend," "project" and similar expressions and future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may," or similar expressions are generally intended to identify forward-looking statements. These forward-looking statements speak only as of the date hereof and are based on Natura &Co's current plans, estimates of future events, expectations and trends that affect or may affect our business, financial condition, results of operations, cash flow, liquidity, prospects and the trading price of our ADSs and common shares, and are subject to several known and unknown uncertainties and risks, many of which are beyond Natura &Co's control. As a consequence, current plans, anticipated actions and future financial position and results of operations may differ significantly from those expressed in any forward-looking statements in this press release. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented. None of Natura &Co or the international underwriters undertakes any obligation to update publicly or to revise any forward-looking statements after we distribute this press release because of new information, future events or other factors. Our independent public auditors have neither examined nor compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such statements. In light of the risks and uncertainties described above, the future events and circumstances discussed in this press release might not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any investment decision based upon these estimates and forward-looking statements.

Contacts

Investors:

Natura
ri@natura.net 
Viviane Behar de Castro: +55 (11) 4389 7881 

Media:

Brunswick Group
NATURA&CO@brunswickgroup.com 

U.S.
Katharine Crallé: +1 (917) 238 6191

Brazil
Roberta Lippi: +55 (11) 992 499 277 
Natasha Bonomi: +55 (11) 993 478 905

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SOURCE Natura &Co

FAQ

What was the amount raised in Natura &Co's follow-on offering?

Natura &Co raised approximately R$5.6 billion (US$1 billion) in its follow-on offering.

How many shares were offered in the Natura &Co follow-on offering?

A total of 121.4 million common shares were offered in the follow-on offering.

What will the proceeds from Natura &Co's offering be used for?

The proceeds will optimize capital structure and fund strategic investments, including Avon integration and digitalization.

When did Natura &Co announce its follow-on offering?

Natura &Co announced the closing of its follow-on offering on October 15, 2020.

What is the share price for the Natura &Co follow-on offering?

Each share was offered at R$46.25 (approximately US$16.46 per ADS).