VC buy-out of Ontex

In the largest ever private equity transaction in Belgium, Ontex – Europe’s leading private label hygienic disposables manufacturer – is being sold to GS Capital Partners and investment funds managed by TPG Capital (TPG) for €1.2 billion.
Ontex1 The transaction, which is subject to customary regulatory approvals, is expected to be completed before the end of the year.
Since the appointment of new management in 2006, Ontex has made good progress by focussing on improving customer service and manufacturing efficiencies.
Sales across Ontex’s three divisions – Retail, Healthcare, and Turkey Regional – totalled €1.1 billion in 2009.
The Retail Division primarily supplies private label products, including disposable diapers, feminine care products and adult incontinence products to European retailers.
The Healthcare Division principally supplies the healthcare market, including institutions such as hospitals and health authorities across Europe.
The Turkey Regional Division supplies branded baby care, adult incontinence, and feminine care products to the Turkish retail market and surrounding countries.
Ontex2 “Ontex has been successfully transformed in recent years into a leading manufacturer of private label hygienic disposables in Europe,” said Ontex CEO Michael Teacher. “The management team is excited by the prospect of enhancing Ontex’s existing position through the support, new capital and skill sets of our new owners.”
Ontex has a broad product portfolio, 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.
EBITDA for Ontex in 2010 was €150.3 million compared to €94.8 million in 2008.

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