Hypermarcas set to extend personal care reach with proposed acquisition

By Katie Bird

- Last updated on GMT

Related tags: Personal care, Hygiene, Cosmetics

Brazilian consumer goods company Hypermarcas is set to grow its personal care offerings with the acquisition of a children's cosmetics line.

The company announced that it has entered into a memorandum of understanding with SS Comércio de Cosméticos e Produtos de Higien Pessoal, one of the owners of the Hydrogen brand.

Hypermarcas has expressed a plan to acquire the infant cosmetics sector of the brand including products licensed ‘Disney’ products.

If the deal goes through, and final acquisition contracts are set to be signed mid October, the company will pay 25m Reais ($13.6m) for the assets.

Hypermarcas said the acquisition will help it to generate solid growth within the personal care products sector – a market it has been concentrating on for some time.

Personal care market opportunities

Just under a year ago the company made a significant move into the sector by acquiring Brazilian company Niasi for R$366m.

Niasi’s two flagship brands are Risqué and Biocolor, that offer a range of hair color and nail polish products.

“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 at the time of the acquisition.

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.

Related topics: Business & Financial

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