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Management Side
CMPC subsidiary acquires Brazilian diaper manufacturer Falcon for $123 million

BRAZIL (NEws release) -- Softys S.A., a subsidiary of Empresas CMPC S.A. (CMPC), has signed an agreement with Ontex Hygienic Spain S.L., a unit of the Belgian Ontex Group, to purchase all shares of Falcon Distribuição Armazenamento e Transporte S.A. (Falcon), a Brazilian company specializing in baby diapers and adult incontinence products. The acquisition is valued at approximately $123 million (BRL 671 million or €110 million), subject to customary price adjustments and regulatory approval from Brazil's Antitrust Authority. The transaction is expected to close within six months.

Falcon, which employs approximately 1,400 people, operates a production plant in Senador Canedo, Goiás, with 16 production lines dedicated to manufacturing products under brands like Cremer, PomPom, and Bigfral. Ontex's CEO, Gustavo Calvo Paz, noted that the divestment supports Ontex's strategy to focus on retail brands and healthcare in Europe and North America, enabling the company to reduce debt and strengthen its financial position. Ontex's Brazilian business contributed €97 million in revenue and €13 million in adjusted EBITDA during the first half of 2024.

This transaction follows Softys' acquisition of Ontex's Mexican operations in 2023. Ontex expects net proceeds of approximately €82 million after taxes and fees, with up to €18 million held in escrow. The deal will result in a net gain of €39 million, though it will also trigger a non-cash accounting loss of €140 million due to accumulated currency translation reserves.

CMPC anticipates a positive impact on its financial results from this acquisition, although the exact benefits remain uncertain.

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