Global hygiene, health and consumer goods company Essity has completed a HKD 14.6 billion ($2.86 billion AUD) deal to sell its entire stake in Hong Kong-based hygiene company Vinda International Holdings Limited, the company announced on 21 March.

Isola Castle Limited, a company indirectly wholly owned by pulp and paper product company APRIL, announced the bid to acquire Essity’s 51.59 percent holding in Vinda in December last year for HKD 23.50 per share.

Essity president and CEO Magnus Groth said the company was now “in better shape than ever”. 

“Following the divestment of Vinda, the categories with the highest margins and lowest capital intensity account for a larger part of the company,” Groth said. “The company’s pulp consumption has halved, and we have a more attractive portfolio with higher profitability and lower volatility. 

“The transaction reduced Consumer Tissue’s share of net sales in 2023 from 41 percent to 33 percent. We look forward to continuing to grow a portfolio of more value-generating categories.”  

Essity will retain a presence in Asia and in Vinda through continued licensing of Essity’s brands which include TENA, Modibodi and Tork. 

The company will publish its interim report for the first quarter of 2024 on 25 April.

Photo by Essity.

Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editor@incleanmag.com.au
Sign up to INCLEAN’s newsletter.