Belgium's Ontex, one of the world's leaders in manufacturing and marketing disposable hygiene products for children and adults, has agreed to acquire 100 per cent of the shares of Grupo P.I. Mabe, S.A. de C.V. (“Grupo Mabe”) a leading Mexican hygienic disposables business for an initial consideration of MXN 5,650 million, equal to €314 million, payable in cash and in Ontex shares, it said in a press release.
The agreement includes the assumption of debt, estimated at MXN 930 million (€52 million). An additional deferred consideration of up to MXN 1,550 million (€86 million ) may be payable contingent upon Grupo Mabe achieving EBITDA targets for the period 2015 to 2017.Belgium's Ontex, one of the world's leaders in manufacturing and marketing disposable hygiene products for children and adults, has agreed to acquire #
The acquisition of Grupo Mabe will add a high quality business that is a strong strategic fit and will deliver compelling returns to shareholders. This transaction represents the next phase in delivering the Ontex growth strategy, enhancing organic growth with a strategic acquisition, extending the Ontex platform outside Western Europe and deeper into growth markets, and increasing the contribution to the group from Ontex owned brands.
Grupo Mabe is a growth business based in Puebla with a strong position in the growing Mexican hygienic disposables market. Around 60 per cent of its MXN 7 billion (€400 million) sales are in Mexico, the 5th largest personal care market in the world. The remainder of their sales are in exports to other markets, primarily in the Americas region, including a strong foothold in the US. Ontex's entry into these new markets and the creation of a new Americas Division further extends the Group's platform for growth.
In Mexico, Grupo Mabe offers a full product portfolio, including Babycare, Femcare and Adult Incontinence and has become the second largest player across its Personal Care categories. It has established a clear number two market position in Babycare and number three in the small but fast growing Adult Incontinence market. Built over 38 years, innovation behind popular Grupo Mabe brands including Chicolastic and BBtips, together with a growing portfolio of retailer brands, has enabled Grupo Mabe to deliver a revenue CAGR of approximately 10 per cent over the 2012 to 2014 period, outperforming the Mexican Hygiene market growing at approximately 7 per cent. Grupo Mabe's consistent investments in innovation and manufacturing position the business well for future growth.
Ontex CEO Charles Bouaziz said, "Grupo Mabe is an Ontex style business. Built on strong foundations and a team of highly capable people, Grupo Mabe has established solid market positions, built strong brands through consistent innovation and created lasting connections with its customers and consumers. Grupo Mabe also adds a new and exciting platform for growth for Ontex in the Americas, and we intend to propose to our shareholders that Grupo Mabe Founder and Chairman Gilberto Marín Quintero joins our board, so that his wealth of experience can help us to deliver on future attractive opportunities."
Grupo Mabe Founder and Chairman Gilberto Marín Quintero said, "Joining the Ontex Group represents an exciting moment in the development of Grupo Mabe. Ontex's complementary heritage and culture is extremely important to our customers, consumers and employees, and we look forward to working within Ontex to extend the reach and penetration of Grupo Mabe across its markets." (SH)
Fibre2Fashion News Desk – India
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