Ontex Streamlines Portfolio with Turkish Asset Sale, Eyes Core European Growth

Aalst, Belgium – November 7, 2025 – Ontex Group NV has completed the divestment of its Turkish business to Dilek Grup, a move signaling a strategic refocus on its core markets in Europe and North America. The sale, completed November 3rd, includes the Canbebe, Canped, and Prosafe brands, along with the Istanbul manufacturing plant. While the deal generates approximately €25 million in net proceeds, it also triggers a €70 million non-cash accounting loss related to currency translation reserves.

This strategic move, according to industry analysts, reflects a broader trend of multinational corporations streamlining portfolios and focusing on areas with higher growth potential and profitability. While Ontex maintains a strong presence in emerging markets, this divestiture suggests a prioritization of established, higher-margin regions.

A Shift in Focus

Ontex CEO Gustavo Calvo Paz stated the transaction “concludes our strategic refocus” on core markets. The company has been facing increasing competitive pressure and margin erosion in certain regions, prompting a reevaluation of its global footprint. Sources close to the company suggest that the Turkish operation, while a steady performer, didn't align with Ontex’s long-term growth trajectory and profitability targets.

“The Turkish market is competitive, and while Ontex held a reasonable share, achieving significant margin improvement was proving challenging,” said an anonymous industry analyst. “Focusing on Western Europe and North America, where they have stronger brand recognition and established distribution networks, makes strategic sense.”

The sale allows Ontex to reinvest capital into its core brands and innovation in areas such as sustainable materials and advanced product development. The company is reportedly exploring opportunities to expand its retail and healthcare offerings in key European markets.

Dilek Grup’s Expansion into Hygiene

For Dilek Grup, the acquisition represents a significant expansion into the hygiene market. The privately-held Turkish conglomerate has a diversified portfolio spanning consumer goods, real estate, and energy. While new to the hygiene sector, Dilek Grup possesses a strong understanding of the Turkish market and a robust distribution network.

“Dilek Grup is a well-respected player in Turkey with a proven track record of building successful businesses,” explained a Turkish business analyst, speaking on condition of anonymity. “They are likely to leverage their existing infrastructure and market knowledge to grow the Canbebe, Canped, and Prosafe brands.”

The acquisition is expected to strengthen Dilek Grup’s position in the Turkish consumer goods market and diversify its revenue streams. The company is reportedly planning to invest in upgrading the Istanbul manufacturing plant and expanding the product portfolio.

A Growing Trend of Local Acquisitions?

Industry observers are noting a rise in local players acquiring assets from international companies in the hygiene and consumer goods sectors. This trend is driven by several factors, including regulatory changes, increased competition, and a desire for greater control over local markets.

“We’re seeing a shift in the balance of power in the consumer goods sector,” said an anonymous financial analyst. “Local players are becoming more assertive and leveraging their knowledge of local preferences and distribution channels to compete with global giants.”

Increased nationalism and a focus on supporting local businesses are also contributing to this trend. Governments in some emerging markets are implementing policies to encourage local ownership and reduce reliance on foreign investment.

The acquisition of Ontex’s Turkish business by Dilek Grup aligns with this broader trend. It demonstrates the growing capabilities of local players and their ability to compete with multinational corporations.

Financial Implications and Future Outlook

While the €25 million in net proceeds from the sale is relatively modest, Ontex intends to use the funds to strengthen its balance sheet and invest in organic growth initiatives. The €70 million non-cash accounting loss, while significant, is not expected to have a material impact on the company’s long-term financial performance.

Analysts predict that Ontex will continue to focus on streamlining its portfolio and prioritizing investments in high-growth markets. The company is also expected to increase its focus on innovation and sustainability to differentiate its products and attract environmentally conscious consumers.

Dilek Grup, on the other hand, is poised to become a major player in the Turkish hygiene market. The company’s success will depend on its ability to effectively integrate the acquired business, invest in product development, and expand its distribution network.

“This is a win-win situation for both companies,” said an anonymous industry insider. “Ontex can focus on its core markets, and Dilek Grup can expand its presence in a growing sector.”

The divestiture of Ontex’s Turkish business is a clear signal that the global consumer goods landscape is evolving. Local players are becoming more competitive, and multinational corporations are increasingly focused on streamlining their portfolios and prioritizing investments in high-growth markets. This trend is likely to continue in the years ahead, creating both challenges and opportunities for companies operating in this dynamic industry.