AALST - Ontex, the Belgium-headquartered personal hygiene group has agreed a €285 million deal to sell its Mexican business to hygiene company Softys.
The transaction includes Ontex’s business in Mexico and related exports to regional markets as well as its manufacturing facility in Puebla, Mexico. The plant in Tijuana, Mexico remains within the Ontex portfolio as an integral part of Ontex’s North American supply chain footprint. Softys, a wholly owned subsidiary of Empresas CMPC S.A., headquartered in Chile, has a number of established operations across Latin America.
For Ontex, the deal will be seen as an milestone in the company's new strategy announced in December 2021 to focus on its Partner Brands and Healthcare Business and accordingly, to explore strategic alternatives for its branded business in emerging markets.
Welcoming the deal, Esther Berrozpe Galindo, CEO, Ontex, said: “This divestment represents a major milestone in our strategy to reshape our portfolio. The proceeds from the sale will contribute to reducing our net debt and strengthening our balance sheet. I am convinced that Softys, with its 40 years of experience in the personal hygiene market in Latin America, is well placed to take the business forward, benefiting from the talent and expertise of our team in Mexico.”
The business being sold develops, manufactures and distributes baby diapers, baby pants, adult diapers and feminine hygiene products, marketed through the brands BBTips, Chicolastic, Kiddies, BioBaby and others. It has approximately 1,300 employees and generated sales of MXN $7.4 billion in 2021.
Ontex and Softys aim to close the transaction, which is subject to the customary conditions, including the applicable merger clearance approvals, by early 2023.
