STOCKHOLM - Essity has received shareholder approval for its proposed acquisition of Australian hygiene company Asaleo Care.
Initially announced in February 2021, Essity had entered an agreement to acquire the remaining 63.8% of the shares in Asaleo Care for AUD 1.40 cash per share. The consideration implies an equity value on a 100% basis of approximately AUD 760m (approximately SEK 4.9 billion) and an enterprise value of AUD 855 million (approximately SEK 5.5 billion).
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.
In 2020, Asaleo Care reported sales of AUD 419 million (approximately SEK 2.7bn) and underlying EBITDA of AUD 89 million (approximately SEK 574 million). Based on this, Asaleo Care would have contributed to Essity's net sales and EBITDA by approximately 2% for 2020.
“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,” Magnus Groth, President and CEO of Essity said in connection to the agreement.
The transaction is still subject to approval by the Federal Court of Australia which will be sought at a court hearing scheduled for June 9, 2021. Subject to Court approval, the transaction is planned to be finalized on July 1, 2021.