Essity acquires Edgewell feminine care products - their first business of that type in the US.
The $340 million acquisition includes label rights in the US, Canada, and the Caribbean for brands Carefree, Stayfree, and o.b. It also includes international labeling rights for Playtex.
Both Playtex and Stayfree enjoy a top three product placement in the Canadian and US markets.
Essity, based in Sweden, is currently an international company, but says they hadn't broken into the US market until now, a move that President and CEO of Essity Ulrika Kolsrud said is part of their new strategy
"With this acquisition we are building a stronger personal care business in North America, in line with our strategy to focus on high yielding categories in attractive geographies.” she said.
A manufacturing plant in Dover is part of the deal. The company says it expects to keep the approximately 450 people working there.
Essity Vice President of Communications Amy Bellcourt.
“I would say continuity is key here, we’re going to continue to manufacture those brands at the same place and, hopefully, with the same people doing it. ” she said.
Bellcourt says since the new ownership focuses solely on feminine care products, it makes them more likely to grow the business than the previous owners, who were on record saying they didn’t prioritize these brands.
“One of the things that Edgewell said in the press release is that this was a non-core business for them. For Essity, this is a core business. This is something that we want to continue to see growing and continue to see becoming even more vibrant. So, I think that’s good news for everybody in terms of the Dover facility. ” she told DPM.
Edgewell's last earnings showed $261 million in revenue, and $17 million in profit over the last 12-month period, which ended June 30th of this year.
Bellcourt adds Essity upper management visited the facility following the announcement to meet the people working there, but communication with plant staff is limited by law until the Department of Justice approves the purchase.
