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Fashion & brands

Coty to purchase Brazil’s Hypermarcas for $1bn

The perfume maker’s deal comes 3 months after agreeing to buy 43 brands from P&G.

Coty (NYSE:COTY), which makes fragrances for brands such as Calvin Klein and Marc Jacobs, will acquire the personal care and beauty business of Brazilian consumer goods maker Hypermarcas SA (BVMF:HYPE3) for about $1bn in cash.

New York-based company Coty said in a statement on Monday that the business being bought from Hypermarcas includes brands such as Monange personal care products and Risque nail polishes and generated net revenue of about $253.5mln as of 2014.

The deal comes three months after Coty agreed to buy 43 similar brands from Procter & Gamble (NYSE:PG).

Coty has been expanding its product portfolio as demand for its perfumes weakens due to tough competition.

Coty said it will fund the deal with a mixture of cash and existing debt facilities, and expects it to close by end March.

Coty shares closed flat at $28.95 on Friday. The stock is up 40% this year.