Candover close to Ontex sale

It is expected that a deal for Ontex - which makes nappies, tampons, wet wipes and incontinence pads - could be reached this week, though there is still a possibility that no agreement will be made.  

European private equity firm Candover currently owns the diaper brand, having bought the business in 2002 in a €1bn deal, which at that time was Belgium’s biggest leveraged buy-out.

Ontex is said to have suffered in competition with US consumer goods giant Procter & Gamble; however, it has fared relatively well during the recession and has apparently benefited from shoppers switching to its products, which are cheaper than P&G’s premium brands.

Candover, as well as Permira and Cinven, recently had its equity stake in troubled UK gambling company Gala Coral wiped out as mezzanine lenders took control of the business.

The buy-out trio’s combined £1.2bn (€1.45bn) stake was virtually nixed, with just £10m (€12.1m) left after one of the most tortuous restructurings in European private equity history.

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