Empresas CMPC S A : Material Fact - Grupo P.I. Mabe Acquisition
July 29, 2022 at 08:08 am EDT
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Santiago, July 29th, 2022
Comisión para el Mercado Financiero
MATERIAL FACT
Empresas CMPC S.A.
Securities Registry Number Nº115
Dear Sirs:
Pursuant to what is laid down in articles 9 and 10, second paragraph of the Securities Market Law No. 18.045, I hereby inform you as a material fact that as of this date Empresas CMPC S.A. ("CMPC"), that yesterday, the subsidiary Softys S.A. entered into a contract for the purchase of all the shares of the Mexican company Grupo P.I. Mabe, S.A. de C.V., hereinafter the "Transaction".
PI. Mabe, S.A. of C.V. is a Mexican company engaged in the development, manufacture and distribution of wet wipes, baby diapers, adult incontinence products and feminine hygiene products in Mexico and other countries, mainly in Central America.
The Transaction considers that, at closing, Grupo P.I. Mabe, S.A. of C.V. will have an industrial plant in the city of Puebla, which consists of 26 lines dedicated to the manufacture of baby and adult diapers and feminine care products, which are marketed through the brands BBTips, Chicolastic, Kiddies, BioBaby and others.
The seller is a subsidiary of the Belgian company Ontex Group, NV, which will retain certain assets and manufacturing operations in Tijuana, Mexico, to serve the United States market.
The initially agreed price for the shares of Grupo P.I. Mabe, S.A. of C.V. is approximately MXN$ 5,450 million, equivalent to US$ 268.6 million as of today, which will be paid on the closing date of the Transaction, without prejudice to the usual price adjustments in this type of operations. On the other hand, the approximate amount of MXN 500 million, equivalent to US$ 24.6 million as of today, will be paid in installments and within a maximum term of 5 years counted from the closing date of the Transaction.
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The materialization of the Transaction is subject to a series of usual precedent conditions in this type of operations, among which is the authorization by the Free Competition authorities in certain jurisdictions. There are no conditions associated with the financing of the Transaction. Following the conditions agreed in the contract, the closing of the transaction is expected to occur within the next six months.
CMPC's solid financial position allows it to have the necessary resources to make the payment of the indicated amount. It is estimated that this acquisition will have positive effects on CMPC's results, notwithstanding that at the moment they are not possible to quantify.
Sincerely,
Francisco Ruiz-Tagle Edwards
CEO
EMPRESAS CMPC S.A.
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Empresas CMPC SA published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 12:07:11 UTC.
Empresas CMPC SA is a Chile-based company primarily engaged in the paper products industry. The Companyâs activities are divided into five business segments: Forestry, which includes products that are logs for the manufacturing of cellulose pulp and solid lumber products, such as sawn lumber, remanufactured products and plywood boards; Pulp, which provides pulp manufactured in production lines in Chile and Brazil; Paper, which focuses on the production and marketing of cardboard, paper for corrugation , industrial-use paper and newsprint; Tissue, which is responsible for producing and selling tissue, sanitary and specialized hygienic products, such as toilet paper, napkins, baby diapers and facial tissues, and Other, which includes general administrative services. The Company operates in Argentina, Colombia, Mexico, Peru and Ecuador, among others. It controls a number of subsidiaries, such as CMPC Celulosa SA, Cartulinas CMPC SA, Chimolsa SA La Papelera del Plata SA.
EMPRESAS CMPC S.A. 
