Ontex Group Announces R$500 Million Arbitration Settlement Regarding Acquisition of its Brazilian Business in 2017

Ontex Group NV announced today that it has entered into an agreement with Hypera S.A. (“Hypera”, formerly Hypermarcas S.A.) settling certain claims relating to the acquisition of the Brazilian personal hygiene business of Hypera by Ontex. As part of the settlement, Ontex will receive 500 million Brazilian Reais (€81 million1) from Hypera by October 1, 2021. Ontex acquired the Brazilian personal hygiene business from Hypera in March 2017 for an enterprise value of 1 billion Brazilian Reais.

Under this agreement, the arbitration proceedings that Ontex initiated in relation to those claims will be closed.

After deduction of certain arbitration-related costs, the remaining settlement amount will be used to pay down debt, consistent with the group’s ambition to reduce leverage.

Note 1: The amount of the settlement is denominated in Brazilian Reais. The € amount in this press release is computed at a EUR/BRL rate of 6.19.

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