Belgium based producer of personal hygiene products Ontex Group NV will acquire the personal hygiene business of Brazil based Hypermarcas S.A. for €286 million. Over the past twelve months, Hypermarcas’ personal hygiene business generated revenue of €343 million and acquisition is expected to help Ontex gain a foothold in Brazil as well as the Americas.

According to Ontex, Hypermarcas’ personal hygiene business is the market leader in the adult incontinence category and holds a solid number three position in baby care in Brazil, the fourth largest hygiene market in the world.

The contribution from HM personal hygiene, including synergies, is expected to result in double digit EPS accretion and a return on capital employed exceeding Ontex’s cost of capital in the first year of ownership.

“After cost synergies, we anticipate modest growth in adjusted EBITDA margins for the enlarged Ontex Group in 2017,” the Ontex said. (AR)