Australian leakproof apparel pioneer Modibodi has been bought by Swedish cleanliness and wellbeing company Essity in a deal worthy of $140 million.
Essity, which owns the Tena model of disposable incontinence solutions, says the acquisition will strengthen its position in the leakproof clothing market place which it describes as the swiftest-escalating phase in the intimate cleanliness group.
“Modibodi has the characteristics we are on the lookout for with leading market positions, powerful brand name and sustainability credentials as perfectly as superb electronic advertising and e-commerce capabilities,” said Magnus Groth, president and CEO at Essity.
Modibodi was founded by its CEO Kristy Chong nine many years back and has a solid current market presence in Australia, New Zealand and the Uk. Previous year’s product sales were about $56.7 million, symbolizing on-12 months development of 18 for every cent. EBITDA was $5.6 million.
In a assertion issued by Essity, Chong reported that as a world-wide leader in cleanliness and health, the Swedish company “can present the know-how and money to choose the manufacturer ahead through its following section of growth, and achieve even higher impact”.
The deal was a single of two acquisitions in the category verified by Essity overnight on Friday. The business will also purchase an 80-for each-cent stake in Knix, a Canadian e-commerce startup that designs and sells leakproof underwear, swimwear, bras and other clothing. That deal was valued at A$459 million The founder and CEO of Knix, Joanna Griffiths, will retain the harmony of the shares and continue as president.
Powerful growth projected in leakproof current market
Essity expects the leakproof clothing market to mature by a lot more than 20 for each cent in every of the next five years and Modibodi will join the company’s existing brands in the sector, which includes Libresse, Bodyform, Saba and Tom Organic and natural.
Founded five a long time back, immediately after remaining sunlight off by FMCG big SCA, publicly outlined Essity also sells solitary-use items these as tissue paper and newborn diapers, along with remedies for compression treatment, orthopaedics and wound care.
The corporation has 46,000 workers around the world and documented web revenue of $18 billion in 2019. Its title is a compression of the words and phrases necessities and necessity.
Modibodi’s assortment consists of leakproof apparel for durations and incontinence such as underwear, swimwear, activewear and maternity have on. It sells on-line in a direct-to-client business model, as properly as by way of retailers, both of those on the internet and offline. The Sydney-headquartered company has 45 staff.
Essity said it expects to finalise the deal in the course of the next fifty percent of this yr.
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