15/07/10
Candover sells Ontex
Candover Investments plc announces that its wholly owned subsidiary, Candover Partners Limited, has agreed the sale of Ontex, one of the leading European manufacturer of hygienic disposable products, to Goldman Sachs and TPG, for an enterprise value of EUR1.2 billion. The transaction remains subject to regulatory approvals and is expected to close by the year end.
The disposal of Ontex will be in line with Candover's valuation of the business as at 31 December 2009. The sale will generate initial estimated cash proceeds of EUR20.2m (GBP16.8m), including carried interest, for Candover Investments. A guaranteed interest accruing deferred payment, as well as additional carried interest, will result in further estimated proceeds of EUR12.1m (GBP10.2m) payable between completion and September 2012.
The Candover 2001 Fund has now fully realised 12 out of its 16 investments.
Commenting on the realisation Malcolm Fallen, Chief Executive Officer of Candover Investments plc commented:
"The sale of Ontex by Candover Partners as part of its ongoing strategy to deliver the value in the portfolio is welcome. Proceeds from the realisation of our investment in Ontex and further carried interest arising on the 2001 Fund will help improve the Company's liquidity at a time of high volatility in markets and weakness of the Euro, the reporting currency of the Candover Funds."
Ends.
* Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited as General Partner/Manager of the Candover 1997, 2001, 2005 and 2008 Funds.