Essity has acquired Australian leakproof apparel brand Modibodi for AU$140 million, on a cash and debt free basis.
Stockholm-based Essity is already active in the leakproof apparel market with brands such as Libresse, Bodyform, Saba and TOM Organic.
Essity CEO Magnus Groth said the acquisition comes at an opportune time, with leakproof apparel having an expected annual growth rate of more than 20% for the next five years.
"The acquisition of Modibodi strengthens Essity's position in leakproof apparel and enables faster growth within better-for-you, better-for-the-planet solutions.
"Modibodi has the qualities we are looking for with leading market positions, strong brand and sustainability credentials as well as excellent digital marketing and e-commerce capabilities."
Modibodi, founded in 2013, provides leakproof apparel for periods and incontinence including underwear, swimwear, activewear and maternity wear.
The company operates an online, direct-to-consumer business model, with growing sales in retail and through e-tailers.
In 2021, the company reported net sales of AU$56.7 million and a sales growth of 18%.
The EBITDA amounted to AU$5.7 million and EBITA to AU$5.6 million.
Modibodi has 45 employees and us headquartered in Sydney, Australia.
"I am proud of all we have created at Modibodi over the past nine years and pleased that Modibodi is joining Essity," founder Kristy Chong said.
"As a global leader in hygiene and health, Essity can provide the expertise and capital to take the brand forward during its next phase of growth, and achieve even greater impact."
The transaction is expected to be finalised in the second half of 2022.