Ontex Completes €265 Million Sale of Mexican Business to Softys

Cleary Gottlieb represented long-standing client Ontex Group NV (Ontex) in the sale of its Mexican business activities and related exports to certain regional markets to Softys S.A. (Softys).

Ontex’s manufacturing facility in Tijuana, Mexico, will remain with Ontex and will service its North American operations. Aggregate net cash proceeds received by Ontex at closing, after the impact of taxes, transaction expenses, and balance sheet adjustments are approximately €225 million. This amount is subject to customary post-closing adjustments. In addition, the parties agreed to a deferred payment with a value of approximately €40 million, payable to Ontex over a maximum of five years.

The transaction signed on July 28, 2022, and closed on May 2, 2023.

Ontex, headquartered in Aalst (Belgium) and listed on Euronext Brussels, is a leading international provider of personal hygiene solutions, with expertise in baby care, feminine care, and adult care. Ontex employs around 7,500 people across the globe with a presence in 21 countries, and its products are distributed in more than 100 countries. The transaction is an important milestone in Ontex’s strategy announced in December 2021 to focus on its partner brands and health care business, and accordingly to explore strategic alternatives for its branded business in emerging markets.

Softys is a personal hygiene company with operations across Latin America. It is a wholly owned subsidiary of Empresas CMPC SA, a global leader in the pulp and paper business, which is headquartered in Chile and listed on the Chilean stock exchange.

For more information, please see the press release here.