In what has to be one of the more peculiar Goldman Sachs investments out there, Goldman and American buyout company TPG have teamed up to spend $1.5 acquiring diaper-maker Ontex from Candover, according to the Wall Street Journal.
Candover investments, a London-based firm, was looking to ditch Ontex as the company proved too costly for Candover to handle due to a $3 billion Euro commitment.
WSJ: The deal, which could be completed this week, is part of a disposal program by buyout firm Candover, which stopped investing at the beginning of the year after its largest investor, Candover Investments PLC (CDI.LN), failed to meet a EUR1 billion commitment to the firm’s EUR3 billion 2008 fund. Candover’s future remains in doubt and it has recently been in talks about a possible takeover by a third party.
TPG and Goldman Sachs are expected to aim to expand the company across Europe, Algeria and China, where it currently operates.
Apparently there’s massive growth ahead for nappies, but we’re not sure if Goldman’s Ontex will target young children or European debt traders.