Coty Inc. Announces Acquisition of Hypermarcas' Beauty & Personal Care Business, ~$1.0B In Cash

Coty Inc. (NYSE: COTY) announced today that it has entered into a definitiveagreement to acquire the personal care and beauty business (the "BeautyBusiness") of Hypermarcas S.A. (BM&FBovespa:HYPE3) for approximately $1.0billion (R$3.8 billion) in cash. The transaction will be funded with acombination of cash on hand and available debt facilities. The Beauty Business is a $253.5 million (R$977.5 million) net revenuebusiness as of 2014, with an offering of brands that hold leading positionsin the highly competitive Brazilian beauty and personal care market, whichis the third largest in the world. Brands that Coty would acquire 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 -- largest skin care brand in Brazil -- Biocolor -- a best-selling hair colorant in Brazil The Beauty Business comprises state of the art manufacturing anddistribution facilities in the state of Goias, with critical mass go tomarket capabilities complemented by a proven management team. As a result,it provides an excellent platform to integrate the existing small Cotybusiness as well as the larger Procter & Gamble Specialty Beauty business inBrazil. The latter is expected to be merged into Coty in the second half ofcalendar 2016, subject to regulatory clearances and other customary closingconditions. Bart Becht, Interim CEO and Chairman of Coty, commented: "We are excited toannounce the acquisition of the Beauty Business of Hypermarcas, a leadingbeauty and personal care business in one of the world's most importantretail markets. We expect that the strength of the brands, the impressiveleadership team and its robust infrastructure will enhance Coty'scompetitive position and very much complement our contemplated merger withthe P&G Specialty Beauty Business. Today's announcement is another step inour progression towards creating a pure-play global leader and challenger inBeauty." The transaction is subject to regulatory clearances and other customaryclosing conditions. The transaction is expected to be closed in two stagesby end of March 2016. As a reminder, Coty will release fiscal 2016 first quarter financial resultsbefore the open of the U.S. equity markets on the morning of Thursday,November 5, 2015. On that date, at 9:00 a.m. ET, Coty will webcast live itsconference call discussing its results, business outlook and recentcorporate developments, including the Beauty Business acquisition. BartBecht and Patrice de Talhouët, Executive Vice President and ChiefFinancial Officer, will host the call. Those wishing to access the webcastcan do so at http://investors.coty.com. The webcast will also be archived onthe website.