Ontex Agrees to Sell Turkish Subsidiary
Ontex Group NV [EURONEXT: ONTEX], recognized as a prominent developer and producer in the personal care sector, has confirmed a significant decision to sell its Turkish subsidiary to Dilek Grup. This move is not just a transaction; it's a part of Ontex's broader strategy to focus more intently on retail and healthcare markets across Europe and North America.
Details of the Transaction
The sale encompasses Ontex's operations in Türkiye, including the relevant export business along with its manufacturing facility located in Istanbul. This transition marks a pivotal moment for Ontex as it seeks to streamline its operations and strengthen its core markets.
About Ontex's Turkish Operations
The Turkish subsidiary of Ontex has carved out a strong position in the realm of personal hygiene products, specializing in the development, production, marketing, and distribution of well-known brands. In 2024, it notably generated approximately €90 million in sales, underscoring the subsidiary's significant market presence and contribution to Ontex’s Emerging Markets division, which has now been identified as discontinued operations.
Significance of Dilek Grup
Dilek Grup stands out as an established distributor of fast-moving consumer goods within Türkiye and its neighboring regions. The company is diversifying its portfolio to include personal care product manufacturing, making it a fitting successor to Ontex's operations in Turkey.
Future Prospects and Strategic Refocus
Laurent Nielly, President Europe at Ontex, expressed pride in the Turkish operations and gratitude towards his team for their dedication and effectiveness over the years. According to Nielly, transferring the business to Dilek Grup positions it for growth, with the expectation that Dilek will invest further to enhance the organization.
Strategic Refocus
This sale is a stride toward Ontex's strategic refocus, aiming to fortify its business ventures within European and North American markets. The company anticipates that the transaction will finalize by the third quarter of 2025, pending the necessary approvals from Turkish competition authorities.
About Ontex
Ontex operates globally, designing and manufacturing a wide array of personal care products including those for babies, women, and adults. The company prides itself on its innovative solutions and distributes its items across around 100 countries, reaching a broad customer base through both retailers and healthcare sectors. With a workforce of roughly 7,500 employees and a presence in 14 countries, Ontex is headquartered in Aalst, Belgium, and continues to adapt to evolving market trends and consumer demands.
Contact Information
If you're interested in learning more about Ontex or the recent sale, you can reach the investor relations team, Geoffroy Raskin, at +32 53 33 37 30 or via email at investor.relations@ontexglobal.com. For media inquiries, please contact Catherine Weyne at +32 53 33 36 22 or via email at corporate.communications@ontexglobal.com.
Frequently Asked Questions
What is the main focus of Ontex Group NV?
Ontex focuses on developing and producing personal care products, including those for babies, women, and adults.
What does the sale of the Turkish subsidiary mean for Ontex?
This sale is part of Ontex's strategy to concentrate on its retail and healthcare brands in Europe and North America.
Who is purchasing Ontex's Turkish subsidiary?
The Turkish subsidiary is being sold to Dilek Grup, which is expanding its business into personal care product production.
What financial impact did Ontex's Turkish subsidiary have?
In 2024, the Turkish subsidiary generated sales of about €90 million, highlighting its significant market presence.
When is the anticipated completion of the sale?
Ontex expects to finalize the sale by the third quarter of 2025, subject to necessary regulatory approvals.
