Essity AB (OM:ESSITY B) entered into an agreement to acquire 45.8% stake in Productos Familia S.A. for approximately SEK 6 billion.
April 21, 2021
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Essity AB (publ) (OM:ESSITY B) entered into an agreement to acquire 45.8% stake in Productos Familia S.A. (BVC:FAMILIA) for approximately SEK 6 billion on April 22, 2021. The purchase price on a debt free basis. Prior to the transaction, Essity AB (publ) held 50% stake and after the transaction, Essity AB (publ) will hold atleast 94% stake in Productos Familia S.A. The acquisition will be fully debt funded and Essity has committed credit facilities in place. The transaction with shareholders entailed an increase of SEK 5,961m in Essity's net debt and the corresponding decrease in Essity's equity.
The completion of the transaction is subject to customary regulatory approvals. As of June 22, 2021, the transaction was approved by Superintendency of Market Power Control antitrust body. The transaction is expected to be finalized in the second half of 2021. The acquisition is expected to be accretive to Essity's earnings per share from 2021. JPMorgan Chase & Co. acted as financial advisor to Essity AB. Credit Suisse Group AG acted as financial advisor to Productos Familia S.A. Juan Felipe Vera of Cuatrecasas acted as legal advisor for Essity.
Essity AB is one of the world's leading manufacturers of hygiene products. Net sales break down by family of products as follows:
- human care products (40.3%): incontinence products (Tena), feminine protection products (Libresse, Bodyform, Nana, Nuvenia, Saba, Nosotras, Donnasept, etc.), diapers (Libero, Up & Go, Libero-Peaudouce, Drypers, Pequenin, etc.), compresses and bandages.
- paper hygiene products (32.6%): paper towels, toilet paper, handkerchiefs, wipes, etc. sold under Tempo, Colhogar, Cozy, Cushelle, Danke, Delica, Demak Up, Favorita, Flen, Lotus, Lovly, Okay, Plenty, Regio and Zewa brands;
- professional hygiene products (26.8%): including toilet paper, handkerchiefs, hand lotions and hand soaps, hand sanitizers, as well as cleaning and wiping products;
- other (0.3%).
At the end of 2023, the group operated around 70 production sites in the world.
Net sales are distributed geographically as follows: Europe (60.3%), North America (17.4%), Latin America (17.1%), Asia (1.6%), and other (3.6%).
ESSITY AB 
