Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Coty to Acquire Hypermarcas Beauty Business for About $1 Billion

Coty Inc. agreed to buy the personal-care and beauty division of Brazil’s Hypermarcas SA for about $1 billion in cash.
Coty cosmetics factory | Source: Wikimedia Commons
By
  • Bloomberg

NEW YORK, United States — Coty Inc. agreed to buy the personal-care and beauty division of Brazil's Hypermarcas SA for about $1 billion in cash, turning again to acquisitions to expand its burgeoning cosmetics line.

The New York-based company will use a combination of debt and cash on hand to pay for the transaction, according to a statement on Monday. The Hypermarcas beauty business generated $253.5 million in revenue last year with brands such as Risqué nail polish and Paixão skin-care products.

The move follows an agreement in July to acquire more than 40 Procter & Gamble Co. beauty brands, a $12.5 billion deal that's poised to turn Coty into one of the world's largest cosmetics companies. That transaction will be conducted as a Reverse Morris Trust, meaning P&G will spin or split off the business, which will then merge with a Coty subsidiary. It will add brands like CoverGirl and Max Factor to the Coty stable of products.

The Hypermarcas deal gives Coty a platform to sell its existing lineup in Brazil, as well as the products it’s getting from P&G. The Hypermarcas transaction is slated to close by the end of March, while completion of the P&G deal is expected in the second half of 2016.

By Nick Turner; editor: Kevin Orland.

In This Article
Topics
Organisations

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Beauty
Analysis and advice on the fast-evolving beauty business.
view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections