Belgium's Ontex Group is close to selling its business in Brazil to conglomerate J&F Investimentos, through its unit Flora, according to a report in the Brazilian newspaper Valor Economico.
According to the paper, Flora, the hygiene and cleaning products unit of J&F, delivered the highest proposal to the Belgian diaper maker, which acquired the business in Brazil from local rival Hypera in 2017.
But the paper does not specify the bid value, saying that proposals from other companies were around 500 million reais ($97 million) and that Ontex expected to get around 650 million reais.
J&F declined to comment. In an e-mailed statement, Ontex said it is divesting its emerging markets activities after a strategy review last year.
The company added that last month it announced an agreement to sell the business in Mexico to Softys SA. 'The process for divesting our Brazilian and Middle Eastern business activities is underway,' the company noted.
Commenting on the divestiture in Mexico, CEO of Ontex Esther Berrozpe Galindo said, “This divestment represents a major milestone in our strategy to reshape our portfolio. The proceeds from the sale will contribute to reducing our net debt and strengthening our balance sheet.
“I am convinced that Softys, with its 40 years of experience in the personal hygiene market in Latin America, is well placed to take the business forward, benefiting from the talent and expertise of our team in Mexico.”
News by Reuters, additional reporting by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.