News

CMPC Expands in Brazil with US$120 Million Purchase Agreement

Sponsors

• Through Softys, it added the operations of Belgium-based company Ontex.

The growth of Chilean forestry companies in Brazil is advancing at a rapid pace. This time, it was Empresas CMPC, linked to the Matte group, that announced a new investment in the country. This comes less than a week after Arauco—owned by the Angelini group—gave the green light to a US$4.6 billion pulp plan in that nation.

CMPC reported that its subsidiary Softys agreed to purchase the operations of Belgium-based Ontex Group in the state of Goiás, in central Brazil, consolidating its 15-year presence in the country's hygiene and personal care products market. The deal adds to its control of Ontex's activities in Mexico, agreed upon in 2023.

Ontex in Brazil has an industrial plant in the municipality of Senador Canedo, state of Goiás, which consists of 16 production lines dedicated to manufacturing baby and adult diapers, marketed under brands such as Cremer, PomPom, and Bigfral, among others.

"This operation aligns with our goal of consolidating our longstanding presence in markets with high growth potential for the personal care business, such as Brazil and Mexico," said Softys' General Manager, Gonzalo Darraidou.

The acquisition of Ontex in Brazil, including its Senador Canedo plant and commercial brands, involves an amount of approximately US$120 million.

The completion of the purchase is subject to a series of customary conditions precedent, including approval by Brazil's antitrust authority.

Expansion

Since Empresas CMPC arrived in Brazil in 2009, the company has invested over US$6 billion in the country. It is where it produces the most pulp and also participates in the tissue and biopackaging businesses.

At the end of April, it announced the start of evaluating a plan worth more than US$4.5 billion to expand pulp production in Rio Grande do Sul, Brazil.

According to a recent company presentation, CMPC holds a 21% market share in tissue paper and 20% in the baby diaper segment in Brazil.

CMPC's relationship with Ontex predates this agreement in Brazil. In May 2023, the paper company reported that its subsidiary Softys had taken control of the Mexican company Productos Internacionales Mabe—owned by Belgium's Ontex Group—whose acquisition was announced in July 2022, allowing it to capture 30% of the baby diaper market share in Mexico.

Source: subscription edition ofEl Mercurio