#United States #Edgewell #Essity #Shelton #Feminine Care

Edgewell Personal Care Sells Feminine Care Business

In a significant move within the consumer products industry, Edgewell Personal Care Company (NYSE: EPC) has announced its definitive agreement to sell its feminine care division to Essity, a prominent Swedish health and hygiene firm, for a staggering $340 million. The agreement is part of Edgewell's strategic initiative to streamline its portfolio and enhance its focus on core operations.

Transaction Details

The transaction is slated for completion in the first quarter of 2026, pending standard closing conditions, including regulatory approvals. Edgewell's feminine care brand portfolio encompasses well-known names such as Playtex®, Stayfree®, Carefree®, and o.b.®. The company plans to allocate the proceeds from this sale primarily towards strengthening its financial foundation and investing in the growth of its remaining core segments. As stated by Edgewell President and CEO Rod Little, this sale represents a pivotal point in the company's transformation strategy.

Vision for Change

Rod Little emphasized that selling the feminine care business will allow Edgewell to sharpen its focus on competitive categories and bolster its overall financial stability. “This is a win for our shareholders and provides new growth opportunities for our employees who will transition to Essity,” Little remarked. The agreement suggests a mutual benefit not only for Edgewell but also for Essity, which seeks growth in North America through the acquisition of these established feminine care brands.

Essity's Ambitions

Ulrika Kolsrud, President and CEO of Essity, expressed enthusiasm about integrating these well-established brands into their operations. This acquisition aligns with Essity's strategy to strengthen its presence in high-yield categories within attractive markets. Kolsrud's statement highlighted the commitment to growth and expansion, stating, “We are building a stronger personal care business in North America, in line with our strategic objectives.”

Transition and Future Operations

Edgewell is set to collaborate closely with Essity during the transition period to ensure seamless integration for employees and consumers. As of the first quarter of fiscal 2026, Edgewell plans to classify the feminine care business as discontinued operations but will continue offering support services to Essity post-transaction.

Despite the inevitable transition costs, Edgewell anticipates that the financial impacts will be mitigated by the income generated from providing these transitional services. According to their estimates, the sale of the feminine care division is expected to have an annualized impact of approximately $0.40 to $0.50 on adjusted earnings per share (EPS), with an adjusted EBITDA between $35 million and $45 million, factoring in transitional support revenue.

Looking Ahead

This strategic divestiture marks a critical juncture for Edgewell as it seeks to redefine its corporate identity and concentrate on its primary strengths. With an expansive range of brands in the personal care sector, including Schick®, Wilkinson Sword®, and Banana Boat®, the company is committed to leveraging its diversified portfolio while maintaining an agile operational framework for sustained growth.

Advisory roles in this transaction were filled by Perella Weinberg Partners LP as the financial advisor and Latham & Watkins LLP as the legal advisor to Edgewell. As the company prepares for this major shift, stakeholders and analysts alike will be keeping a close watch on how this decision reshapes Edgewell's operations in the broader competitive landscape of consumer products.