The world’s third-largest beauty company is changing direction following an acquisition tear in recent years, now exploring strategic options for its Professional hair care/salon and Brazilian businesses to reduce debt and sharpen its focus on Luxury and Consumer fragrance, makeup and skin care. The 21 October announcement has lifted Coty’s stock roughly 18%, though analyst takes are mixed.
[Coty Inc.] is exploring a possible sale of its Professional Beauty business and Brazilian operations in a further show that the firm may have bit off more than it could chew with a series of hefty acquisitions in recent years.
“Today’s announcement accelerates [our] transformation and will help reposition Coty as a more focused and agile company, deleverage our balance...