Ontex reaches important milestone in reshaping its portfolio with binding agreement to sell its Brazilian business to Softys

· finanzen.at

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.

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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.

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