Hypermarcas Buys Mabesa

Brazilian consumer product company Hypermarcas is acquiring local peer Mabesa and subsidiaries for BRL350m in cash. The buyer says it will pay 5% of the total price in 3 business days after the target accepts the offer. The remainder will be paid after closing. A company spokesperson says the deal was handled in-house, adding that the offer is equal to 7x Ebitda. In fiscal year 2009, Mabesa reported net revenue of BRL267m and gross profit of BRL102m. Mabesa manufactures diapers, feminine pads and wet wipes. This is the latest in a string of acquisitions by Hypermarcas. The company recently bought hygiene products manufacturer York for about BRL100m. The York deal is expected to close in October.