12.02.15
BRAZIL: Coty Inc. has entered into a definitive agreement to acquire the personal care and beauty business of Hypermarcas S.A. for approximately $1.0 billion in cash. The transaction will be funded with a combination of cash on hand and available debt facilities.
The beauty business had sales of $253.5 million last year, offering brands that hold leading positions in the highly competitive Brazilian beauty and personal care market, which is the third largest in the world.
Brands that Coty will acquire include Monange, a multi-category personal care brand that offers body care, hair care and female deodorant; nail polish brand Risqué; men’s line Bozzano; skin care range Paixão; and Biocolor, a best-selling hair colorant in Brazil. Hypermarcas also has state-of-the-art manufacturing and distribution facilities in the state of Goias.
Coty says Hypermarcas provides an excellent platform to integrate the existing small Coty business as well as the larger Procter & Gamble specialty beauty business in Brazil. The latter is expected to be merged into Coty in the second half of calendar 2016, subject to regulatory clearances and other customary closing conditions.
“We are excited to announce the acquisition of the beauty business of Hypermarcas, a leading beauty and personal care business in one of the world’s most important retail markets,” said Bart Becht, interim CEO and chairman of Coty. “We expect that the strength of the brands, the impressive leadership team and its robust infrastructure will enhance Coty’s competitive position and very much complement our contemplated merger with the P&G specialty beauty business. Today’s announcement is another step in our progression towards creating a pure-play global leader and challenger in beauty.”
The transaction, which is subject to regulatory clearances and other customary closing conditions, is expected to close by March 2016.
Founded in 2001, Hypermarcas is also a leader in OTC drugs, offering flu products, pain relief, antacids and more.
The beauty business had sales of $253.5 million last year, offering brands that hold leading positions in the highly competitive Brazilian beauty and personal care market, which is the third largest in the world.
Brands that Coty will acquire include Monange, a multi-category personal care brand that offers body care, hair care and female deodorant; nail polish brand Risqué; men’s line Bozzano; skin care range Paixão; and Biocolor, a best-selling hair colorant in Brazil. Hypermarcas also has state-of-the-art manufacturing and distribution facilities in the state of Goias.
Coty says Hypermarcas provides an excellent platform to integrate the existing small Coty business as well as the larger Procter & Gamble specialty beauty business in Brazil. The latter is expected to be merged into Coty in the second half of calendar 2016, subject to regulatory clearances and other customary closing conditions.
“We are excited to announce the acquisition of the beauty business of Hypermarcas, a leading beauty and personal care business in one of the world’s most important retail markets,” said Bart Becht, interim CEO and chairman of Coty. “We expect that the strength of the brands, the impressive leadership team and its robust infrastructure will enhance Coty’s competitive position and very much complement our contemplated merger with the P&G specialty beauty business. Today’s announcement is another step in our progression towards creating a pure-play global leader and challenger in beauty.”
The transaction, which is subject to regulatory clearances and other customary closing conditions, is expected to close by March 2016.
Founded in 2001, Hypermarcas is also a leader in OTC drugs, offering flu products, pain relief, antacids and more.