Shares of personal care products provider Natura & Co (NYSE:NTCO) are on the rise today after the company agreed to divest the luxury beauty brand Aesop to L’Oréal at a $2.52 billion enterprise valuation.
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The move boosts Natura’s balance sheet, helping it deleverage while also focusing on its strategic priorities. These include integration in Latin America, Expanding Avon International’s presence, and optimizing its The Body Shop unit.
Aesop has seen stunning growth over the past ten years with sales surging to $537 million from $28 million and store count rising to 395 from 52.
NTCO shares have been on a tear lately, rising 41.4% so far this year. Today’s price gains further build up on this rise.
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