Coty grows Brazil distribution, footprint with Hypermarcas beauty acquisition

Coty moves into Brazil with Hypermarcas beauty, personal care acquisition

 

NEW YORK — Coty on Monday announced that it would be acquiring Brazilian pharmaceutical company Hypermarcas’ beauty and personal care business for about $1 billion in cash. As of 2014, Hypermarcas’ beauty business brought in some $253.5 million in net revenue in the world’s third-largest beauty and personal care market. 

 

“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. 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.”

 

Among the brands being acquired by Coty are body/hair care brand Monange, Brazil’s market-leading nail polish brand Risqué, Brazil’s leading men’s care brand Bozzano, the country’s largest skin care brand Paixão and the country’s best-selling hair color brand Biocolor. 

 

In addition, the beauty business’ manufacturing and distribution is expected to be a platform through which Coty can integrate its existing brands and the P&G specialty brands that the company hopes to finish acquiring in the second half of 2016. 

 

The Hypermarcas deal is expected to close by the end of March 2016.