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Natura proposes swapping listed entity

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Ferreira to lead the group, replacing Barbosa

(Adds background about Natura's business in paragraphs 4-6, 9;

details of announcement in paragraphs 10 and 13)

SAO PAULO, March 20 (Reuters) - Brazilian cosmetic group

Natura announced on Thursday a leadership shake-up as well as a

restructuring proposal that would swap out the entity that is

listed on the local stock exchange.

Under the plan, set to be voted on by shareholders on April

25, the currently listed holding company Natura&Co

will be integrated into its Natura Cosmeticos subsidiary, which

would then become the group's parent firm with shares listed on

Brazil's stock exchange.

The revamp should lead to a more efficient structure while

providing shareholders with value by "enabling a future

distribution of Natura Cosmeticos's profits," Natura&Co and

Natura Cosmeticos said in a joint securities filing.

The deal reverses a move made by the group in 2019,

after Natura had

bought Avon Products

in an acquisition that created a global beauty powerhouse.

Avon's U.S. business, which was never owned by Natura, was not a

part of the deal.

Natura rapidly grew through high-profile acquisitions

over the last decade, including the purchase of Avon, The Body

Shop and Aesop, but struggled with profitability. That led to a

quest for deleveraging in recent years, with management shifting

to focus on Natura and Avon's operations in Latin America.

Natura&Co's CEO, Fabio Barbosa, and Chief Financial Officer

Guilherme Castellan will leave their roles, the firm said in the

filing. Barbosa will be named chairman of the new parent firm,

while Castellan is leaving the group.

Barbosa, who has been Natura&Co's CEO since 2022,

oversaw the

sale of brands

Aesop and

The Body Shop

.

The group repeated on Thursday that it was still

weighing alternatives to its Avon business outside Latin

America, which could include selling the unit.

Joao Paulo Ferreira will stay on as Natura Cosmeticos' CEO,

and Silvia Vilas Boas will remain CFO, the filing said. Under

the proposal, both would then lead the new parent firm.

Castellan is set to stay on through May 12 to aid in the

transition.

The group said the leadership changes are backed by its

founders and controlling shareholders, who will remain on the

board of the new listed entity.