U.S. private equity firm Advent acquires up to 10% stake in Brazilian beauty giant Natura

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Brazilian cosmetics manufacturer Natura said Monday that U.S. private equity firm Advent International has signed a binding agreement to acquire a portion of the company’s shares. At the same time, Natura also announced a reorganization of its board of directors, including the departure of its founder.

In a filing submitted to the securities regulator, Natura said Advent will acquire 8% to 10% of the company’s shares, with an average target price of 9.75 reais per share (about $1.86).

The transaction will be completed in the secondary market over six months. Advent will be entitled to appoint two members to Natura’s board of directors.

Natura also announced changes to its board. Founders Luiz Seabra, Guilherme Leal, and Pedro Passos will step down. The current chairman and former chief executive officer, Fabio Barbosa, will also leave.

Natura has proposed to shareholders that the four of them form a new advisory committee, which will have no decision-making power.

Under the proposal, Alessandro Carlucci will serve as chairman.

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