Hypermarcas Reaches for Diaper Maker

Brazil’s Hypermarcas is acquiring diaper company Pom Pom Produtos Higienicos and its subsidiaries for BRL300m. It will pay 40% in cash and the remaining 60% stake in 5 annual installments adjusted by the CDI, says the buyer. Itau Securities, which says the price is equal to roughly 7.5x Ebitda, believes the price is in line with other Hypermarcas transactions. Pom Pom has sales of BRL250m, of which 45% comes from the infant diaper segment and 55% from geriatric diapers, says Itau. The company has a market share around 4%-5% in the infant diaper market and 40% in the geriatric diaper segment in Brazil. A Hypermarcas spokeswoman says the deal was privately negotiated and did not involve outside advisors.