Israel-based cloth manufacturer Spuntech has struck a deal to supply US FMCG giant Procter & Gamble with material used to manufacture wet wipes, according to a report published by Globes.
The supplier valued the three-year deal at US$130 million, or US$43 million per year. Following the announcement, Spuntech saw its share price rise 26 percent.
Spuntech’s nonwoven cloth is used to produce wet wipes for both international brands and private labels. The company reported sales of NIS584 million last year, up 15 percent on the previous year. The new deal accounts for some 30 percent of total revenue bringing the final P&G tally to 40 percent of overall sales.