SAO PAULO (Reuters) – The chief executive of Brazilian cosmetics maker Natura &Co Holding SA said on Tuesday the company is now focused on a disciplined capital allocation after agreeing to sell luxury brand Aesop to L’Oreal.
Fabio Barbosa told reporters the company was not considering further divestments or fresh acquisitions following the $2.53 billion deal announced on Monday, whose main goal was financially delevaraging Natura amid high interest rates.
Barbosa noted Natura’s financial leverage was “pratically going down to zero” following the transaction, considering both debt repayments and the cash raised, but added it was time for “discipline” as the firm looks to improve operations in Latin America as well as Avon International and The Body Shop operations.
(Reporting by Gabriel Araujo; Editing by Steven Grattan)
