AALST – Ontex Group, the Belgian developer and manufacturer of hygiene products and solutions for retailers and healthcare, has completed the divestment of its Algerian business to Hygianis SPA, its local distributor for more than 20 years.
The transaction includes Ontex’s business in Algeria and related exports to certain neighbouring countries.
Confirming the sale, Gustavo Calvo Paz, CEO of Ontex, said: “With this transaction, we make further progress in becoming the number one trusted partner for retail and healthcare brands, allowing us to focus even more on the strategic roadmap for our Core Markets of Europe and North America, where we have significant growth and margin improvement potential.
Ontex’s business in Algeria generated about €50 million sales in 2022, and was part of Ontex’s emerging markets activities, which were classified as discontinued operations following the strategic decision in 2021 to divest these.
The cash proceeds prior to taxes and transaction costs are approximately €25 million, and remain subject to customary post-closing adjustments.