Essity to Bolster Its Brand Portfolio with Edgewell's Feminine Care Business Acquisition
Essity Expands Its Reach in Feminine Care Market
In a significant move to enhance its market presence, Essity, a leading hygiene and health company, has signed an agreement to acquire Edgewell Personal Care's feminine care business in North America. This acquisition includes notable brands such as Carefree, Stayfree, and o.b., while also securing global rights for the Playtex brand. The strategic buy comes with a substantial price tag of USD 340 million, which is approximately SEK 3.2 billion, assessed on a cash and debt-free basis.
A Strategic Expansion into a Competitive Market
Essity's latest acquisition aligns with its ambition to strengthen its position within the lucrative feminine care sector, particularly in the United States, which is recognized as the world’s largest market for hygiene products. The deal will effectively bolster Essity's portfolio with products ranging from liners to pads and tampons, catering to varied consumer needs.
In a statement, Ulrika Kolsrud, President and CEO of Essity, expressed optimism about this acquisition, stating, "I am looking forward to further growing these well-known brands, utilizing our established recipe for success within Feminine Care. This move is instrumental in building a stronger personal care business in North America, in line with our strategy to focus on high-yield categories in attractive geographies."
Financial Insights and Market Implications
The acquisition deal, priced at USD 340 million, signifies an EBITDA multiple of approximately 12.1x based on pro-forma IFRS figures from June 30, 2025. When potential synergies are considered, this multiple decreases to 8.3x. The business segment acquired reported annual sales of USD 261 million (around SEK 2.5 billion) for the year ending in June 2025, alongside a segment operating profit of USD 17 million (approximately SEK 160 million). Currently, the acquired business employs around 500 individuals, roughly 450 of whom are stationed at the Dover, Delaware production facility.
What’s Next for Essity?
The transaction is contingent upon receiving customary regulatory approvals and is anticipated to conclude in the first quarter of 2026. Essity's portfolio currently includes several strong regional brands in the feminine care market, such as Libresse, Bodyform, Nana, and Nosotras, which offer diverse products including pads, liners, intimate wipes, and menstrual cups, indicating the company's robust footing within the industry.
Upcoming Discussions and Webinars
As part of the communication strategy surrounding this acquisition, Essity has scheduled an audio webcast featuring key executives, including CEO Ulrika Kolsrud and CFO Fredrik Rystedt, to discuss the transaction in detail. This presentation, set for November 13, will provide further insights into the strategic implications of acquiring Edgewell's feminine care business and how it aligns with Essity's long-term growth strategies.
In conclusion, Essity's acquisition of Edgewell's feminine care sector marks a significant step towards amplifying its market share and product offerings in a highly competitive domain, promising to bring more innovative and trusted products to consumers across North America.
Topics Consumer Products & Retail）
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