Shareholder green-light for Essity's Asaleo deal

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.