#USA #Edgewell #Essity #Shelton #Feminine Care

Edgewell Completes Major Sale of Feminine Care Division

In a definitive move to refine its business strategy, Edgewell Personal Care Company (NYSE: EPC) has successfully finalized the sale of its feminine care operations to Essity, a top global player in health and hygiene, for a substantial $340 million. The deal marks a significant milestone for Edgewell, highlighting its commitment to focus on its core brands and long-term growth strategies.

Edgewell’s President and CEO, Rod Little, emphasized the importance of this sale as a strategic transformation for the company. "Completing the sale of our Feminine Care business is a pivotal step in our transformation. By simplifying our portfolio, we can concentrate our efforts on shave, sun and skin care, as well as grooming products. This positions Edgewell to become a more focused, agile, and sustainable personal care entity," he stated.

The proceeds from this transaction will primarily be allocated towards bolstering Edgewell's financial foundation. This includes enhancing its balance sheet, reducing debt from its U.S. revolving credit facility, and continuing investments in its main product lines. Such strategic moves are expected to drive sustainable growth and provide long-term value for shareholders.

As part of the acquisition agreement, Edgewell and Essity have arranged a Transition Services Agreement that ensures a seamless transition for employees and consumers involved with the feminine care line. This collaboration will include support services across various domains, including accounting, information technology, quality assurance, operations, and supply chain management, for at least one year following the closure of the transaction.

Additionally, Edgewell plans to share financial insights related to this business divestiture in an upcoming Current Report on Form 8-K, expected to be released before February 6, 2026. This financial overview will reflect the feminine care segment as a discontinued operation, providing transparency for stakeholders and investors alike.

The decision to divest from the feminine care business is deeply rooted in Edgewell's vision to prioritize growth in other areas that align more closely with its brand identity. The company is renowned for its diverse portfolio of consumer products, including well-known brands like Schick®, Wilkinson Sword®, and Billie® for shaving, as well as Banana Boat® and Hawaiian Tropic® for sun and skin care. The move signifies a shift not only in strategy but also in the market dynamics of personal care.

In essence, the sale represents not just a financial maneuver, but a clear indication of Edgewell's strategic path moving forward. By shedding parts of its business that no longer align with its growth ambitions, Edgewell is aiming to reposition itself as a leading entity in its remaining sectors, thereby enhancing its competitive stance in an evolving market.

Overall, the partnership with Essity is expected to foster opportunities for former Edgewell employees within the kid's care line, as they join a leading firm known for its health and hygiene expertise. This dual benefit—streamlining Edgewell’s operations while enhancing workforce prospects—is likely to resonate well with both the companies and their stakeholders.

As Edgewell enters this new chapter, the company remains committed to providing innovative solutions while ensuring robust financial health, thus paving the way for a more agile and resilient corporate identity.