AALST – Personal care specialist Ontex has entered into a binding agreement to sell its Brazilian business to diaper manufacturer Softys.
The €110 million deal includes Ontex’s complete operations in Brazil and its manufacturing facility in Senador Canedo in the State of Goiás.
It develops, manufactures, commercialises 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 Ontex Group in the first half of 2024.
Commenting on the deal, 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.”
Softys, a wholly owned subsidiary of Chile-headquartered Empresas CMPC, has operations across Latin America including Ontex’s Mexican business which it acquired in 2023.
Ontex and Softys said they 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.
