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Essity to acquire Australian hygiene company Asaleo Care
Following December's announcement, Essity has now agreed with hygiene company Asaleo Care, which began life 1n 1932 as the British Australian Paper Company, to acquire the remaining 63.8% of its shares. Essity currently holds 36.2% of the shares.
"Following productive discussions with the Asaleo board of independent directors, I am pleased to announce this agreement", says Magnus Groth (pictured), 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.
Asaleo Care manufactures and markets Personal Care and Professional Hygiene products in Australia, New Zealand and Fiji and Consumer Tissue in New Zealand and Fiji. The company's portfolio of market-leading 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.
Asaleo Care has approximately 700 employees and three manufacturing facilities.
The proposal is not subject to financing conditions; Essity will finance the acquisition of shares through own funds.
The agreement is supported by the Independent Directors of Asaleo Care and is expected to be voted on at a meeting of the independent shareholders in Asaleo Care in the second quarter of 2021. Subject to the approval of the agreement at that meeting, subsequent Court and regulatory approvals, the completion of the transaction is expected to be finalized in the second quarter of 2021.
11th February 2021