AALST, Belgium
,
May 2, 2023
(press release)
–
Ontex Group NV (Euronext: Ontex), a leading international supplier of personal care products, announces that it 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 transaction includes Ontex’s manufacturing facility in Puebla, Mexico, its branded business in Mexico as well as related exports to certain regional markets. The business employs around 1,000 blue-collar employees and 350 white-collar employees. 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. 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. investor.relations@ontexglobal.com corporate.communications@ontexglobal.com Ontex is a leading international personal hygiene group. We engineer and make high quality products for Baby Care, Feminine Care and Adult Care and are the partner of choice for consumers, retailers, and institutional and private healthcare providers around the world. © Ontex BV 2023
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.
