Ontex rejects PAI's takeover offer

Francesca Veronesi
06 July 2018

Tweet
Facebook
LinkedIn
Google plus
Send to

Euronext Brussels-listed Ontex, a provider of personal hygiene products, has confirmed its rejection of an unsolicited takeover bid from PAI Partners.

Having reviewed the proposal by PAI, the Ontex board of directors has unanimously rejected it, on the basis that it significantly undervalued the company.

Ontex has a market value of approximately €1.6bn, according to press reports.

Ontex's CEO, Charles Bouaziz, serves on the supervisory board of PAI. As a result, the board has not involved Bouaziz in discussions about the merits of PAI's proposal and Bouaziz has temporarily recused himself from his position at PAI.

The business is far from unfamiliar with PE-ownership. In 2003, Candover took Ontex private for slightly more than €1bn, €430m of which was provided as equity, €510m as senior debt and a further €165m from a syndicate of mezzanine lenders.

Seven years later, TPG and GS Capital Partners jointly acquired Ontex from Candover in a €1.2bn deal.They were attracted by Ontex's progress following difficulties in 2004 as well as its large market share. At the time, the deal was the biggest PE-backed buyout in Belgium.

Ontex was then listed in 2014, at an enterprise value of approximately €1.87bn based on total debt of €645.6m as of March 2014, equivalent to around 10.7x adjusted EBITDA for 2013.

Founded in 1979, Ontex is personal hygiene products specialist, focusing on baby care, feminine care and adult care. Its products are distributed in 110 countries through brands including BBTips, BioBaby, Pompom, Bigfral, Canbebe, Canped, ID and Serenity.

The group generated a turnover of €2.36bn in 2017, posting an EBITDA of €266.4m. With its headquarters in Aalst, the business employs 11,000 people across 22 countries.