Hot on the heels of its P&G Beauty merger, US beauty house, Coty, has moved to strengthen its position in the key beauty market of Brazil with a deal to acquire the beauty business of pharmaceutical and health/wellness group, Hypermarcas, for approximately $1bn (BRL3.86bn).

Brazil is the world’s third largest beauty market and the beauty business of Hypermarcas will add $253.5m to Coty’s top line based on 2014 sales. Brands that Coty is acquiring include:

Monange – a multi-category personal care brand (body care, hair care, female deodorant)

Risqué – the market leader in nail polish in Brazil

Bozzano – the market leader in men’s care in Brazil

Paixão – the largest skincare brand in Brazil

Biocolor – a best-selling hair colorant in Brazil.

These will join Coty’s more international stable of brands which includes Adidas, Calvin Klein, Chloé, Davidoff, Marc Jacobs, OPI, Philosophy, Playboy, Rimmel and Sally Hansen.

GO-TO-MARKET INFRASTRUCTURE

The beauty business of Hypermarcas includes manufacturing and distribution facilities in the state of Goias, offering Coty handy go-to-market capabilities.

The New York listed beauty house – with net revenues of $4.4bn for the fiscal year ended June, says: “As a result, it provides an excellent platform to integrate the existing small Coty business as well as the larger Procter & Gamble speciality beauty business in Brazil.” P&G Beauty is expected to be merged into Coty in H2 2016, subject to the usual regulatory and other clearances.

Bart Becht, Interim CEO and Chairman of Coty, says the Brazilian acquisition “will enhance Coty’s competitive position” in the market.

The cash transaction will be funded with a combination of cash and available debt facilities and, subject to regulatory approval, is expected to be closed in two stages by the end of March 2016.

Coty will reveal more details about the deal on Thursday when it releases its fiscal 2016 Q1 financial results.