Ontex sold to VC for €1.2 billion

26 July 2010, Zele – Belgium’s Ontex, one of Europe’s leading private label hygienic disposables manufacturers, has been sold to GS Capital Partners and investment funds managed by TPG Capital (TPG) for €1.2 billion. The deal, which is believed to be the largest ever private equity transaction in Belgium and 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 said it had made good progress by focussing on improving customer service and manufacturing efficiencies. Sales across the company’s 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 retailers, supplying Europe’s leading retailers. The company’s Healthcare Division principally supplies the healthcare market including institutions such as hospitals and health authorities across Europe. Ontex’s Turkey Regional Division principally supplies branded baby care, adult incontinence, and feminine care products to the Turkish retail market and surrounding countries.

Michael Teacher, Ontex’s Chief Executive Officer said: “Ontex has been successfully transformed in recent years into a leading manufacturer of private label hygienic disposables in Europe. 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.”

Richard Butland of GS Capital Partners said: "Ontex has made significant advancements in the past few years and we are very excited about this opportunity to invest in a company with such an established presence and development potential."

Simon Henderson of TPG said: "The partnership between TPG, GS Capital Partners and the Ontex management team will open a range of new opportunities for Ontex. Through our global reach and operational capabilities, we look forward to helping drive the next stage of the company’s profitable growth.”

Ontex has a broad product portfolio, manufactured across its 12 production facilities, 9 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.