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Natura Considering Aesop U.S. IPO or Spin-off

The Brazilian beauty company said it is looking at options to fund Aesop’s expansion.

PARIS — Brazilian beauty company Natura & Co. said Monday that it has initiated the study of a possible initial public offering of Aesop, the group’s luxury beauty and wellness brand and business unit, in the U.S. or a spin-off of Aesop. That could then be followed by an IPO.

“The IPO has been assessed over the last months as an alternative to fund the accelerated growth of Aesop, and Natura & Co.’s management has been taking the necessary steps to pursue such [an] alternative,” Natura wrote in a statement dated Oct. 17 addressed to the company’s shareholders and the market at large.

“This strategy is also aligned with Natura & Co.’s goal to provide its brand and business units with increased autonomy and accountability,” the company added.

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The study was approved by Natura’s shareholders and its board of directors on Monday.

In either scenario, Aesop’s business would remain led by Michael O’Keefe, the brand’s chief executive officer, through a holding company to be listed in the U.S. That would also hold Aesop’s subsidiaries.

Today, Aesop is a subsidiary of Natura Cosméticos.

A decision on any transactions will be taken by the company’s board once the study is completed.

There had been recent market rumors that Natura was considering a spinoff of Aesop or sale of the Body Shop.