Coty has announced that it has entered into a definitive agreement to acquire Hypermarcas’ personal care and beauty arm for R3.8 billion in cash.

Hypermarcas’ beauty business pulled in R977.5 million in net revenue last year, and boasts a number of leading Brazilian brands, including personal care range Monange, nail polish line Risqué, male grooming marque Bozzano, skin care label Paixão and Brazil’s best-selling hair colorant Biocolor.

Under the terms of the deal, Coty will also acquire Hypermarcas’ state-of-the-art manufacturing and distribution facilities in Goias, granting the US beauty giant the means to integrate its existing beauty business as well as the P&G portfolio it acquired earlier this year.

“We are excited to announce the acquisition of the Beauty Business of Hypermarcas, a leading beauty and personal care business in one of the world’s most important retail markets,” said Bart Becht, Interim CEO and Chairman of Coty. “We expect that the strength of the brands, the impressive leadership team and its robust infrastructure will enhance Coty’s competitive position and very much complement our contemplated merger with the P&G specialty Beauty Business. Today’s announcement is another step in our progression towards creating a pure-play global leader and challenger in Beauty.”

The transaction is expected to complete by the end of March 2016.