Hypermarcas SA, the Brazilian consumer-goods reported that it will be making a payment of around 2.5 billion reais, about $1.5 billion, for drugmaker Mantecorp Industria Quimica & Farmaceutica SA. The Brazilian firm has recently made over 10 acquisitions, spanning the last one year. However, its announcement of the latest investment saw its share decline.

The firm fell 6.3 per cent to 23.10 reais in Sao Paulo trading last week, the biggest decline since May 20, reported Bloomberg. Hypermarcas will pay 600 million reais in cash for 24 per cent of closely held Mantecorp and issue 78 million shares to its owners, the Mantegazza family, for the remaining 76 per cent, read a regulatory filing made by the firm. The new stock would be valued at 1.92 billion reais, based on the Dec. 17 Hypermarcas closing price of 24.65 reais.

This year Hypermarcas has acquired companies including generic-drug manufacturer Laboratorio Neo Quimica, diaper-maker Sapeka and Colgate-Palmolive Co.’s soap brand. Hypermarcas wants to boost sales by an average of 65 per cent in the next five years.

The company will focus on integration and organic growth in 2011, and expects operational savings of more than 148 million reais after the full integration with Mantecorp, Bergamo said in a conference call with investors and analysts today, said a Bloomberg report.

Mantecorp, the Rio de Janeiro-based owner of the Episol sun-protection brand and Epidrat moisturizers, will report net sales this year of 572 million reais and gross profit of 375 million reais, according to a presentation by Hypermarcas. About 46 per cent of Mantecorp’s sales come from prescription drugs, 30 per cent from over-the-counter medicines, 16 per cent from skin- care products and 8 per cent from generic drugs, it said.

Hypermarcas expects its margin on earnings before interest, taxes, depreciation and amortization -- a measure of profitability -- to reach 47 percent in the first half of 2013, from 21 percent now, said Bloomberg.

Hypermarcas is one of the largest consumer goods companies funded with Brazilian capital and has the largest and most diversified portfolio of brands, including a number of leading brands in their respective markets. It operates in four market segments, developing, manufacturing and distributing products that belong to a traditional and well-established portfolio of brands. In April, Hypermarcas completed its 3rd equity offering, when more than R$1.2 Billion were collected.

26 Dec 2010.