SWEDEN (News release) -- Essity has finalized its acquisition of 45.8% of the shares in Colombian hygiene company Productos Familia S.A. ("Familia"). Essity now owns 95.8% of Familia. The purchase price amounts to USD 1,540m (approximately SEK 13bn) for 100% of the company on a debt free basis. The acquisition is expected to be accretive to Essity's earnings per share from 2021.
"I'm happy to welcome our Familia colleagues into the Essity family. Together we will build an even stronger platform in Latin America to further increase growth, profitability and efficiency as well as accelerating the digital transformation", says Magnus Groth, President and CEO, Essity.
Essity has been an owner in Familia since 1985. This innovative and consumer centric company has a strong presence across Latin America, primarily operating in Personal Care and also in Consumer Tissue and Professional Hygiene. Familia is already consolidated in Essity's accounts, and reported sales in 2020 of SEK 6,950m, an adjusted EBITDA of SEK 1,419m and adjusted EBITA of SEK 1,170m, equivalent to an adjusted EBITA margin of 16.8%. Organic sales growth in 2020 amounted to 2.8%.