Hypermarcas completes major Brazilian cosmetics acquisition

By Guy Montague-Jones

- Last updated on GMT

Related tags Brazilian cosmetics market Initial public offering

Hypermarcas has taken a deeper bite into the Brazilian cosmetics market with the acquisition of Niasi for R$366m ($200m).

Niasi has a long history in beauty care dating back over 75 years but today the firm is particularly strong in the hair coloring and nail polish markets.

Its major brands in these categories, Risqué and Biocolor, account for more than 80 per cent of Niasi’s revenue, which reached R$246m last year.

Hypermacas said the acquisition will strengthen its cosmetics line and give the company access to Niasi’s network of beauty salons.

“Niasi’s products are highly complementary to our current cosmetics portfolio. Hypermarcas had already consolidated its leadership in the OTC drugs market and, with this step, we also conquer a national leading position in beauty and personal hygiene in self-service stores”​ said Claudio Bergamo, CEO of Hypermarcas.

Hypermarcas went public in April 2008 and since then the consumer goods company has made a number of acquisitions including the purchase the Revlon’s subsidiary Ciel.

On concluding its Initial Public Offering in May, Hypermarcas raised R$581.2m. The company said it intends to allocate 60 percent of this money to acquisitions and the remaining 40 percent to marketing and launches.

“The acquisitions confirm our commitment to the strategy which has already been announced during our IPO, that is consolidating the Brazilian consumer goods market, with the acquisition of strong traditional brands to revitalize them with investments in marketing,”​ added Bergamo.

Hypermarcas will pay R$366 million to acquire the totality of Niasi. This value includes R$233.0 million to be paid out in cash, about R$40 million in existing debt and R$93 million to be paid within five years.

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