Ontex completes sale of Brazilian operation to Softys
The transaction includes the production unit in Senador Canedo, Goiás, and brands such as PomPom, Cremer, Sapeka, Turma da Mônica and Bigfral
Ontex Group NV, a leading company in the development and production of personal care products, has announced the completion of the sale of its commercial activities in Brazil to Softys, a subsidiary of Empresas CMPC S.A. Headquartered in Chile, Softys operates throughout Latin America in the personal care segment.
The agreement covers the production unit located in Senador Canedo, in the state of Goiás, and the entire Ontex business in Brazil, which includes the development, manufacture, marketing and distribution of diapers and pants for the children’s market, under the PomPom, Cremer, Sapeka and Turma da Mônica brands, as well as products for adults under the Bigfral brand. The company employs around 1,400 people.
“Reaching this milestone allows us to focus further on our retailer brands and healthcare in Europe and North America, where we have significant growth drivers for the future. Moreover, the proceeds from the sale will further reduce our indebtedness, putting us in an even stronger position to further execute our transformation,” said Gustavo Calvo Paz, CEO of Ontex. “I am convinced that Softys is well placed to take the business forward, enabled by the talent and expertise of our teams.”
The net cash proceeds received at closing, after tax-related discounts, hedging expenses and balance sheet adjustments, total 81 million euros. In addition, 18 million euros will be put up as collateral at closing. The proceeds from the sale will be used to reduce Ontex’s gross financial debt.
