Cleary Gottlieb is advising Ontex, a leading global producer of disposable personal hygiene solutions for babies, women and adults, in its announced acquisition of Grupo P.I. Mabe, a leading Mexican hygienic disposables business, for an initial consideration (including assumed debt) of MXN 5,650 million (€314 million) in cash and Ontex shares. Deferred consideration of up to MXN 1,550 million (€86 million) may be payable contingent upon Grupo Mabe achieving certain EBITDA targets in 2015, 2016 and 2017. The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2016.
Ontex simultaneously announced its intention to place up to 4,083,332 newly-issued ordinary shares (representing approximately 6% of current ordinary shares in issue) in an accelerated bookbuilt placement, open to institutional investors only. The proceeds of this placement will be used to fund a portion of the initial cash consideration to be paid to the sellers of Grupo Mabe. Cleary Gottlieb is also representing Ontex in this equity placement.
Brussels-based Ontex has significant global operations and distribution in over 100 countries. The strategic acquisition of Mexico-based Grupo Mabe, which has established itself as a market leader in Latin America with a strong presence in the U.S. and Europe, enhances Ontex’s global platform.