Candover sells nappy-maker Ontex to TPG and Goldman for €1.2 billion
16 Jul 2010
UK-based private equity firm Candover Investments plc yesterday agreed to sell nappy-maker Ontex to TPG and Goldman Sachs for €1.2 billion.
Belgian-based Ontex, is a maker of nappies, wipes and products for feminine hygiene. Its broad product portfolio is manufactured across its 12 production facilities, nine of which are located in Western Europe and the remainder in Turkey, Algeria and China. It plans to open new manufacturing facilities in Moscow and Sydney later this year.
Candover had bought Ontex in 2002 from the Van Malderen family for €1 billion, which at that time was Belgium's biggest leveraged buy-out.
But since buying it, Candover had to pump about €67 million into Ontex, enabling it to generate revenues of €1.1 billion last year.
Ontex had to face competition from US consumer goods giant Procter & Gamble (P&G), but it did well during the global recession as consumers opted for Ontex' cheaper products compared to P&G's pricey brands.
"The sale of Ontex by Candover Partners as part of its ongoing strategy to deliver the value in the portfolio is welcome,'' said Candover chief executive Malcolm Fallen.