Goldman and TPG close in on Ontex
GOLDMAN Sach’s private equity wing is close to completing the purchase of nappy-manufacturer Ontex in partnership with American buy-out house TPG for more than €1.2bn (£990m), reports the Sunday Telegraph.
The deal to purchase Ontex from Candover nearly collapsed when Goldman Sach’s original equity partner pulled out, but the late addition of TPG has kept the deal alive, and the belief is the deal could be completed as soon as this week.
Candover purchased Ontex, now Europe’s largest manufacturer of unbranded nappies, for €1bn seven years ago, and the company, which supplies some of Europe’s biggest retailers including Tesco’s, is set to make earnings of €150m on €1.2bn sales.
The company, which also make sanitary towels and wet wipes, has predicted 10 per cent growth this year, mainly due to an increase of purchasers moving down to unbranded nappies in the economic downturn.
But its private equity owners have been reviewing the sale of its 14 portfolio assets since the listed arm of the company backed out of a pledge to put €1bn into a €3bn fundraising last year.
Candover sold energy consultancy firm Wood Mackenzie for £553m last year but has lost its investment in yacht company Ferretti and food-testing business Alcontrol, and most recently was forced out of Gala Coral when mezzanine debt holders took over the bingo and bookmaking firm.
Candover is looking for a windfall from the Ontex sale to help stave off the advances of Alberta Investment Management Corporation which has launched a takeover bid.
MAREK GUMIENNY
CHAIRMAN AT CANDOVER
Marek Gumienny, the Candover chairman, was born in England to Polish parents, and studied Maths at Warwick University.
He joined Candover in 1987 and became group managing director a year later, a position he held until last year when he moved into the chairman’s seat.
He joined the private equity firm after qualifying to be a chartered accountant with Pricewaterhouse Coopers, but left, telling the Independent back in 2003 he got bored of just giving advice to people and not being able to back his own judgement.
He has had plenty of chances to use his judgement as the chief dealmaker at the firm and he has been involved in the takeovers of Swissport, Vetco International and Ferretti, but he told the group’s AGM last year its strategy going into the downturn was “inappropriate”.
He describes his judgement in brokering deals as being based on his Maths background but influenced also by his penchant for gambling, a trait that clearly underlines his willingness to back his own decisions at the negotiating table.