15th Jul 2010 16:02
For immediate release on 15 July 2010 Candover* sells Ontex
Candover Investments plc announces that its wholly owned subsidiary, Candover Partners Limited, has agreed the sale of Ontex, one of the leading European manufacturer of hygienic disposable products, to Goldman Sachs and TPG, for an enterprise value of €1.2 billion. The transaction remains subject to regulatory approvals and is expected to close by the year end.
The disposal of Ontex will be in line with Candover's valuation of the business as at 31 December 2009. The sale will generate initial estimated cash proceeds of €20.2m (£16.8m), including carried interest, for Candover Investments. A guaranteed interest accruing deferred payment, as well as additional carried interest, will result in further estimated proceeds of €12.1m (£10.2m) payable between completion and September 2012.
The Candover 2001 Fund has now fully realised 12 out of its 16 investments.
Commenting on the realisation Malcolm Fallen, Chief Executive Officer of Candover Investments plc commented:
"The sale of Ontex by Candover Partners as part of its ongoing strategy to deliver the value in the portfolio is welcome. Proceeds from the realisation of our investment in Ontex and further carried interest arising on the 2001 Fund will help improve the Company's liquidity at a time of high volatility in markets and weakness of the Euro, the reporting currency of the Candover Funds."
Ends.
* Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited
as General Partner/Manager of the Candover 1997, 2001, 2005 and 2008 Funds.
For further information, please contact: Tulchan +44 20 7353 4200 Susanna Voyle Peter Hewer Notes to Editors:Candover
Candover is a private equity house with its roots in European buyouts. Since its formation in 1980, it has invested in 137 buyouts worth €46 billion. Investment in deals by Candover is provided in two forms, from Candover Investments plc, a publicly quoted investment trust, and from funds managed by Candover Partners Limited, a wholly owned subsidiary.
Ontex
Ontex is one of the leading European manufacturer of private label diapers, feminine hygiene products and adult incontinence products. The business supplies supermarket private label products in Western Europe, and a combination of private label and branded products in Eastern Europe and Turkey, markets which are growing rapidly. Ontex was taken private from the Belgian stock exchange by Candover in January 2003 at an enterprise value of €1.1bn. The company faced a number of significant developments in the market which severely eroded profit margins and in 2006 a new management team, led by turnaround specialists Michael Teacher and Chris Parratt, was recruited to oversee a recovery in performance. This team has been instrumental in returning the business to growth through a combination of tight cost control and a significant improvement in manufacturing and supply chain performance.
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