STOCKHOLM - Essity has entered an agreement to acquire the remaining shares in Australian hygiene company Asaleo Care.
The deal will see Essity, which is already the largest shareholder in Asaleo with 36.2% of the shares, acquire the remaining 63.8% for AUD 1.40 cash per share.
For Essity, the deal will give it a strong platform for further growth in the Australia and Pacific region. Asaleo Care manufactures and markets personal care and professional hygiene products in Australia, New Zealand and Fiji and consumer tissue materials in New Zealand and Fiji. Its portfolio of brands includes Libra, Handee Ultra, Purex, Sorbent, Deeko, Viti and Orchid, and the global brands TENA and Tork through an exclusive license agreement with Essity.
“Following productive discussions with the Asaleo Board of Independent Directors, I am pleased to announce this agreement," said Magnus Groth, president and CEO, Essity. "The acquisition of Asaleo Care will facilitate the opportunity for profitable growth in Australia, New Zealand and the Pacific region and will further consolidate our position as a leading global health and hygiene company.”
In 2020, Asaleo Care reported sales of AUD 419 million (approximately SEK 2.7 billion) and underlying EBITDA of AUD 89 million (approximately SEK 574 million). Sales growth in 2020 amounted to 2.3%. Asaleo Care has approximately 700 employees and three manufacturing facilities.
The deal is expected to close in the second quarter of 2021.