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Goldman, TPG Buy Ontex

July 19, 2010

Diaper maker goes for reported €1.2 million

Investment group Goldman Sachs Group, along with TPG,has purchased private label diaper maker Ontex from Candover in a deal estimated at €1.2 billion.

The transaction is being financed with a debt package of around €670 million in line with the 50/50 cash and debt mix.

Based in Belgium, Ontex makes wet wipes and feminine products as well as diapers which are sold on the private label market. It reported earnings before interest, taxes, depreciation and amortization, or Ebitda, for 2009 of €150.3 million, compared with €94.8 million the previous year.

Ontex manufactures its products across 12 production facilities, nine of which are located in Western Europe and the remainder in Turkey, Algeria and China. It plans to open new manufacturing facilities in Moscow and Sydney later this year.

"The partnership between TPG, GS Capital Partners and the Ontex management team will open a range of new opportunities for Ontex. Through our global reach and operational capabilities, we look forward to helping drive the next stage of the company's profitable growth," said Simon Henderson, head of TPG's U.K. buyout team.

The sale is part of a disposal program by buyout firm Candover, which stopped investing at the beginning of the year after its largest investor, Candover Investments PLC (CDI.LN), failed to meet a commitment to the firm's €3 billion 2008 fund.

Ontex was bought by Candover out of its earlier, 2001, fund which has now realized 12 of its 16 investments.

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