JBS Controller Buys Hypermarcas Assets

Hypermarcas has agreed to sell several home care brands and related production facilities to Flora Produtos de Higiene e Limpeza, controlled by JBS holdco J&F Participacoes, for BRL 140m ($79m). The sale comes as Brazilian consumer goods company seeks to consolidate after a string of buys since 2008 and focus on its pharmaceutical, beauty and personal care segments. The value is equal to 1.2x the 12-month net revenue of the pieces from July 2010 to June 2011.The transaction includes facilities in Santa Catarina that produce powder washing soap, insecticide and various home care liquid products, as well as the Assim, Sim, Gato, Fluss, Santifleur and Mat Inset brands. BR Partners and Credit Suisse advised Hypermarcas, and also have the mandate to sell other non-core assets, according to a person familiar with the situation. Santander advised Flora, the person familiar says. Other assets Hypermarcas would like to unload include the Etti food business and home cleaning products business Assolan, the person says. About four companies have expressed an interest in Assolan because of its strong brand and modern facilities, the person adds.