Monday, February 6, 2012

Seeking Alpha: Hypermarcas May Be On Several Shopping Lists

It's not uncommon for one company's failure to be another's opportunity. Built through aggressive acquisition, Brazil's Hypermarcas (HYPMY.PK) had leading brands in branded drugs, generics, personal care, home care, and food. Not so long ago, Hypermarcas looked like it was on the way to becoming Brazil's answer to Unilever (UL), Procter & Gamble (PG), or Johnson & Johnson (JNJ), but those plans have gone seriously awry.

Shrink To Survive
At the risk of oversimplification, Hypermarcas got too big too fast and pursued quantity (size) over quality. With a hefty amount of debt on the balance sheet, the company made itself vulnerable to performance shortfalls and that's exactly what happened.

Read the full piece here:
Hypermarcas May Be On Several Shopping Lists

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