Will Coty's Strategic Review Streamline Its Sprawling Business?
Shares of Coty (NYSE: COTY) recently popped after the beauty products maker announced that it was exploring the divestment of its professional beauty business, its associated hair care brands, and its Brazilian unit. It's unclear how much those businesses would fetch in a sale, but they generated $2.7 billion in revenue (31% of Coty's top line) last year.
Coty plans to apply the proceeds toward reducing its debt and boosting shareholder value with buybacks and dividends. Coty stated that the strategic shift would enable it to focus more on the growth of its fragrance, cosmetics, and skin care businesses.
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Source Fool.com
