MADRID/LONDON Oct 16 Spanish buyout firms
Portobello and Santander's Vista Capital, are selling
diaper maker Indas, and have attracted a bid from Canadian paper
group Domtar Corp among others, banking and private
equity sources said.
Indas, which was bought by the two Spanish private equity
firms in 2007 for about 350 million euros, is Spain's top maker
of incontinence pads and other hygiene products and exports to
several European countries as well as Latin America and Africa.
Domtar has been buying diaper makers in the United States
and Europe in the past two years to expand its personal care
business and lower its exposure to weak pulp prices.
Other firms such as U.S. private equity firm Blackstone
had also looked at Laboratorios Indas, which could fetch
between 300 million and 400 million euros ($540 million), but
Blackstone was unlikely to stay in the running, two sources
Portobello Capital, Vista and Blackstone declined to
comment, while Domtar said it would not comment on speculation.
Five people familiar with the matter confirmed that Indas was up
Ageing populations across the world have pushed up demand
for incontinence products - sales of adult diapers are set to
overtake baby ones by next year in Japan, according to research
Spain is one of the European Union countries where the
median age has risen the most over the past decade, but deep
spending cuts in the recession-hit country have also hurt
businesses in recent years.
A banking source said Portobello and Vista had bought the
business for around 12 times earnings before interest, taxes,
depreciation and amortization, but would be selling it now at
about 7 or 8 times Ebitda, if the deal goes ahead.
This source put Indas' 2013 Ebitda at around 50 million
euros, although other sources could not confirm the figure.