Softys acquires manufacturing facility in Senador Canedo Ontex Group NV announces that it has completed the divestment of its Brazilian business activities to Softys S.A. a personal hygiene company with operations across Latin America and a wholly-owned subsidiary of Empresas CMPC S.A. The transaction includes Ontex’s business in Brazil and its manufacturing facility in Senador Canedo in the State of Goiás commercializes and distributes diapers and pants for the baby care market Aggregate net cash proceeds received at closing after the impact of tax-related and transaction costs as well as provisional balance sheet adjustments Euro 18 million will be put in escrow at closing The divestment proceeds will be used to reduce Ontex’s outstanding gross financial debt further Ontex Group NV is a leading international developer and producer of personal care products Republication of Lesprom Network content is prohibited without the prior written consent of Lesprom Network General Terms and Conditions and Privacy policy A JBS SA beef plant in the centre western state of Goias in Brazil was ordered shut for two days by labor auditors over irregular work conditions, Reuters reported citing one of auditors who inspected the facility last week on Wednesday JBS immediately presented "an adaptation plan" which has been accepted by the Ministry of Labour and Employment and is being executed Notice of the closure was posted on the national labour auditors' union (Sinait) website earlier this week The auditors closed the plant on Friday after finding employees were routinely subjected to "exhausting" work shifts of 10 to 16 hours a day was allowed to reopen on Monday after the company presented the plan to adjust work conditions Auditors will verify those conditions on weekly basis JBS said "activities in the unit were not interrupted and continue normally." According to the Brazilian agriculture ministry JBS' Senador Canedo plant is authorized to export beef to Egypt The facility can process more than 80 cows per hour and has over 20 tons of storage capacity Global Ag Media provides a knowledge sharing platform offering premium news analysis and information resources for the global agriculture industry Sign up to our regular newsletter and access news from across the Global AG Media network Image: Falcon Distribuição Armazenamento e Transporte S.A Softys S.A., a subsidiary of Empresas CMPC S.A has signed an agreement with Ontex Hygienic Spain S.L. to purchase all shares of Falcon Distribuição Armazenamento e Transporte S.A a Brazilian company specializing in baby diapers and adult incontinence products The acquisition is valued at approximately $123 million (BRL 671 million or €110 million) subject to customary price adjustments and regulatory approval from Brazil's Antitrust Authority The transaction is expected to close within six months operates a production plant in Senador Canedo with 16 production lines dedicated to manufacturing products under brands like Cremer noted that the divestment supports Ontex’s strategy to focus on retail brands and healthcare in Europe and North America enabling the company to reduce debt and strengthen its financial position Ontex's Brazilian business contributed €97 million in revenue and €13 million in adjusted EBITDA during the first half of 2024 This transaction follows Softys’ acquisition of Ontex's Mexican operations in 2023 Ontex expects net proceeds of approximately €82 million after taxes and fees The deal will result in a net gain of €39 million though it will also trigger a non-cash accounting loss of €140 million due to accumulated currency translation reserves CMPC anticipates a positive impact on its financial results from this acquisition although the exact benefits remain uncertain