Softys, a CMPC subsidiary, acquires Ontex’s operations in Mexico, strengthening its position in the Latin American market
Softys, a company dedicated to the manufacture and commercialization of tissue and personal care products, took a significant step in its strategy toward consolidating its position in the Mexican market by closing an agreement to acquire the operations of the Belgian company Ontex, located in the State of Puebla, southeast of Mexico City.
Ontex’s operations in Mexico include diapers, feminine hygiene and personal care products, as well as the trademarks that distinguish its products in the Mexican market.
“Without a doubt, this is a very important strategic operation, since it aligns with our objective of growing in markets with high development potential for the personal care business, such as Brazil and Mexico,” said Softys CEO Gonzalo Darraidou.
“The operations and brands acquired in this operation are a perfect complement to the current operations of our subsidiary in Mexico, since it incorporates a highly specialized team and high-tech personal care products manufacturing lines, as well as well-known brands in Mexico, such as BBTips, Chicolastic, Kiddies and BioBaby,” added Darraidou.
Indeed, the integration of both companies consolidates Softys as the third largest player in Latin America in the personal care market, and its subsidiary in Mexico as the second largest operator in that country in an industry that includes diapers for babies, adults and feminine hygiene. This is complementary to the current relevance of the Softys subsidiary in the tissue paper market.
The acquisition of Ontex’s operation in Mexico at its plant in Puebla together with the trademarks used in that country add up to a sum in Mexican pesos equivalent to USD 304 million.
This is in addition to the key investment decision of Softys at its Mexican subsidiary to approve an increase in its tissue paper production capacity by 60 thousand annual tons. The first stage of 30 thousand more tons per year is already being implemented at the plant in Altamira, Tampico.
Likewise, the company also has plans to build a new site in Mexico, with potential locations currently being evaluated.
“We continue to make decisive progress in our goal of consolidating ourselves as the largest operator of tissue and personal care products in Latin America,” added Darraidou.
The recent acquisitions of the Brazilian companies Sepac and Carta Fabril as well as the finalization of the purchase agreement for Ontex’s operations in Mexico and the company’s expansion plans in that market speak to the strategic growth of CMPC’s subsidiary in Latin America, which is present in more than 20 markets through its 22 commercial offices, enabling it to reach more than 500 million consumers globally.
With this purchase, the Company is set to position itself as the third largest player in Latin America in the personal care market, which includes baby and adult diapers and feminine hygiene products.