Hypermarcas Accelerates M&A Spree

Hypermarcas has clinched MOUs to acquire 3 more brands in Brazil, bringing the number of acquisitions announced in the past week to 4 with a combined value of more than BRL450m. The consumer brands company says it has agreed to buy Facilit, a dental hygiene specialist that owns the Sanifil brand; York, which makes cotton swabs and related items, for a combined BRL179m; and drugmaker Luper, for $52m. The company, which last week announced its plan to acquire its third diaper maker company Sapeka for BRL225m, is also planning to raise up to BRL1.25bn in new equity later this month with proceeds exclusively earmarked for M&A. Facilit posted gross revenues of BRL62.7 in 2009 and will cost Hypermarcas $79m, 60% of which will be paid up front with the remainder to be paid in 5 equal annual installments. York earned BRL63.3m in 2009 and is selling for BRL100m, to be paid for up front following due diligence. Luper made BRL44.6m last year.