Domtar is planning to expand its personal care business in Europe. The Canadian company announced it would acquire Laboratorios Indas, one of Spain's leading producers of incontinence products, for €285m.
Canada's Domtar Corporation has announced its intention to acquire Spanish manufacturer of hygiene products Laboratorios Indas. The company said that a definitive agreement had been signed. The transaction is still subject to approval by the authorities and is expected to be closed by the end of this year.
Domtar said the sale price was €285m but explained that the Spanish manufacturer had around €140m of debt. This is expected to be reduced by the collection of €25m of past due accounts, resulting in an enterprise value of around €400m.
According to Domtar, Indas has a leading market position across a number of adult incontinence segments in Spain. The Spanish company also produces other absorbent hygienic and medical products. Indas operates a plant in Toledo near Madrid which has 283 employees and a site in Casablanca, Marocco which produces children's hygiene products and employs 35 people. Including sales staff, the total number of employees at Indas is 460. Indas has annual sales revenues of around €190m and an EBITDA of around €46m.
With the takeover, Domtar will expand its Personal Care business in Europe. "With the addition of the new business, Domtar will become one of the leading adult incontinence products manufacturers in Europe," said John D. Williams, Domtar's President and CEO.
In July this year, Domtar strengthened its position on the US market for hygiene products. The company acquired US baby nappy manufacturer Associated Hygienic Products (AHP) for $272m.