Ontex Group, an international developer and producer of personal care products, has completed the divestment of its Brazilian business activities to Softys S.A., a personal hygiene company with operations across Latin America and a wholly-owned subsidiary of Empresas CMPC S.A., headquartered in Chile.

The transaction, which was first announced in October 2024, includes Ontex’s business in Brazil and its manufacturing facility in Senador Canedo in the State of Goiás. The business develops, manufactures, commercializes and distributes diapers and pants for the baby care market under the PomPom, Cremer, Sapeka and Turma da Mônica brands, as well as for the adult care market under the Bigfral brand. It employs approximately 1400 employees.

Gustavo Calvo Paz, CEO of Ontex, says: “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. I am convinced that Softys is well placed to take the business forward, enabled by the talent and expertise of our teams.“

Aggregate net cash proceeds received at closing, net of cash/debt disposed, are €81 million, after the impact of tax-related and transaction costs, hedging expenses, as well as provisional balance sheet adjustments. On top of this amount, €18 million will be put in escrow at closing. The divestment proceeds will be used to reduce Ontex’s outstanding gross financial debt further.