Ontex Group Considers Bid for Domtar Personal-Care Unit
(Bloomberg) -- Belgium-based Ontex Group NV is considering a bid for Domtar Corp.’s personal-care business that could value the unit at as much as $1.1 billion, according to people with knowledge of the matter.
Ontex is working with an adviser to prepare a bid for the business, which Domtar announced was under review in August, said the people who asked not to be identified because the matter is private. Ontex could work with a partner to help fund the transaction, the people said.
The unit, which is generating about $110 million in annual earnings before interest, taxes, depreciation, and amortization, is also attracting private equity interest, the people said. No final decision has been made and Domtar could elect to keep business.
A representative for Ontex declined to comment. A representative for Domtar didn’t respond to requests for comment.
The unit manufactures adult incontinence products, providing cost-savings with one of Ontex’s largest product lines that was bolstered by its 2013 purchase of Associated Hygiene Products.
Domtar fell 0.5% to to $26.04 at 1:41 p.m. in New York on Thursday, giving the company a market value of about $1.4 billion. Ontex was little-changed, closing at 11.88 euros in Brussels, giving it a market value of about 978 million euros ($1.1 billion).
Ontex also makes feminine-care and baby-care products. The company boosted its presence in the category with the purchase of Mexico’s Grupo Mabe in 2016, according to its website.
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