Natura&Co evaluates Aesop’s IPO with US listing via Reuters

SAO PAULO (Reuters) – Natura&Co said on Monday its board of directors approved studies for a possible initial public offering (IPO) of Aesop, which could be preceded by a spin-off with a listing in the United States.

“The IPO has been evaluated as an alternative to Aesop’s rapid growth in recent months, and Natura & Co management is taking the necessary steps to seek such an alternative,” the group said in a material statement. Aim to give greater autonomy to business units.

The announcement comes a month after Natura’s (BVMF: ) shares went public amid rumors of a restructuring of units at the cosmetics group.

At the time, the company denied that its board of directors had conducted any study of a spin-off of Aesop or the sale of The Body Shop.

The move comes months after Fábio Barbosa, the former president of Santander Brasil (BVMF: ) and Grupo Abril, was announced as the company’s new chief executive. Since then, Natura&Co has been talking about restructuring its operations to give business units more autonomy, simplify its structure and exit less profitable markets.

Besides Australian skin and hair care brand Aesop, Natura also owns British cosmetics and fragrance brands The Body Shop and Avon.

At this Monday’s briefing, Natura said the eventual spin-off could unlock more value for Aesop. However, the business will continue under current president Michael O’Keefe through a holding company listed in the US.

(By Aluisio Alves)