Ontex reaches important milestone in reshaping its portfolio with binding agreement to sell its Brazilian business to Softys
September 30 2024 - 4:00PM
UK Regulatory
Ontex reaches important milestone in reshaping its portfolio with
binding agreement to sell its Brazilian business to Softys
Aalst, Belgium, September 30,
2024 – Ontex Group NV (Euronext: Ontex), a leading
international developer and producer of personal care products,
announces that it has entered into a binding agreement to sell its
Brazilian business activities to Softys S.A. for an enterprise
value of BRL 671 million (or approximately €110 million*). Softys
is a personal hygiene company with operations across Latin America,
that also acquired Ontex’s Mexican business activities in 2023. It
is a wholly owned subsidiary of Empresas CMPC S.A., which is
headquartered in Chile.
Gustavo Calvo Paz, Ontex’s CEO, said: “This
divestment represents another major milestone towards Ontex’s
ambitioned portfolio, focusing on retail brands and healthcare in
Europe and North America. Moreover, the proceeds from the sale will
further reduce our indebtedness, putting us in an even stronger
position to execute our transformation. 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 teams, as they also
did with our Mexican business.”
The transaction includes Ontex’s business in
Brazil and its manufacturing facility in Senador Canedo in the
State of Goiás. The business develops, manufactures, commercializes
and distributes diapers and pants for the baby care market under
the PomPom, Cremer, Sapeka and Turma da Mônica brands, as well as
for the adult care market under the Bigfral brand. It has
approximately 1,400 employees and contributed revenue of €97
million and adjusted EBITDA of €13 million to the Group in the
first half of 2024.
Subject to customary balance sheet adjustments,
the net proceeds of the transaction, after deduction of tax-related
payments and transaction fees, are expected to be approximately €82
million*, of which up to €18 million* will be held in escrow. The
transaction will generate a net gain on disposal of approximately
€39 million* and trigger the recognition of a non-cash accounting
loss of approximately €(140) million* related to the accumulated
currency translation reserves.
Ontex and Softys aim to close the transaction,
which is subject to customary conditions, including merger
clearance from the Brazilian antitrust authority, during the first
half of 2025.
[*] All amounts in € are based on the
current BRL/EUR exchange rate, and can therefore change by the time
of finalization of the transaction.
Enquiries
- Investors Geoffroy
Raskin
+32 53 33 37 30
investor.relations@ontexglobal.com
-
Media
Maarten
Verbanck +32
53 33 36 20
corporate.communications@ontexglobal.com
About Ontex
Ontex is a leading international developer and producer of care
products and solutions for retailers and healthcare, with expertise
in baby care, feminine care and adult care. Ontex’s innovative
products are distributed in around 100 countries through retailers
and healthcare providers. Employing some 7,500 people, Ontex has a
presence in 14 countries, with its headquarters in Aalst, Belgium.
Ontex is listed on Euronext Brussels and is part of the Bel Mid®.
To keep up with the latest news, visit ontex.com or follow Ontex on
LinkedIn, Facebook, Instagram and YouTube.
- 241001_BrazilDivestment_EN
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