AALST - Ontex, the Belgium-headquartered personal hygiene group has completed the divestment of its Mexican business activities to Softys S.A. a personal hygiene company with operations across Latin America and a wholly-owned subsidiary of Empresas CMPC S.A., headquartered in Chile.
The €265 million deal includes Ontex’s manufacturing facility in Puebla, Mexico, its branded business in Mexico as well as related exports to certain regional markets.
The business, which has around 1,350 employees, manufactures and distributes baby diapers, baby pants, adult diapers and feminine hygiene products, marketed through the BBTips, Chicolastic, Kiddies and BioBaby brands amongst others.
Ontex’s manufacturing facility in Tijuana, Mexico, will remain with Ontex and will form an integral part of Ontex’s North American operations and supply chain footprint.
Announcing the completion of the deal, Gustavo Calvo Paz, CEO of Ontex, said: “With this transaction, we make a significant step in the implementation of our strategy and in strengthening our balance sheet. While there is more to accomplish, reaching this milestone allows us to focus further on our partner brands and healthcare business in the Core Markets of Europe and North America, where we have significant growth drivers for the future.“
Aggregate net cash proceeds received at closing, after the impact of taxes, transaction expenses and balance sheet adjustments are approximately €225 million. This amount is subject to customary post-closing adjustments. The proceeds will be used to repay Ontex’s €220 million term loan. In addition, the parties have agreed to a deferred payment with a value of approximately €40 million, payable to Ontex over a maximum of five years.
