STOCKHOLM - Essity has agreed to acquire approximately 44% of the Colombian hygiene firm Productos Familia S.A in a US$1.540 million deal that will bring its total holding in the company to at least 94%.
Essity has been an owner in Familia since 1985, which, headquartered in Medellín, Colombia, has strong presence across Latin America.
The company operates primarily in Personal Care, and also in Consumer Tissue and Professional Hygiene. Familia is already consolidated in Essity’s accounts, and reported sales in 2020 of SEK 6,950 million, an adjusted EBITDA of SEK 1,419 million and adjusted EBITA of SEK 1,170 million. Organic sales growth in 2020 amounted to 2.8%.
“Familia is an innovative and consumer centric company," said Magnus Groth, President and CEO of Essity. "Our strong relationship dates back more than 30 years. With this acquisition we are building a stronger platform in Latin America to increase growth, profitability and efficiency as well as accelerating the digital transformation."
In Colombia, Familia is the market leader for Feminine Care with the brand Nosotras, Incontinence Products with the brand TENA and Consumer Tissue with the Familia brand.
Net sales split 2020 per category was Feminine Care 38%, Consumer Tissue 31%, Baby Care 13%, Incontinence Products 11%, and Professional Hygiene 7%. The most important markets are Colombia and Ecuador, with respectively 50% and 21% of net sales 2020. Familia has approximately 5,000 employees and eight production facilities.
The completion of the transaction is subject to customary regulatory approvals and is expected to be finalized in the second half of 2021.