The Swedish hygiene products maker has agreed to buy Modibodi for $93.70M; the purchase price for Knix amounts to $320M on a cash and debt free basis for 80% of the company. Through the acquisition Essity becomes a global market leader within leakproof apparel, the fastest growing product segment in Intimate Hygiene which includes Feminine Care and Incontinence Products.
According to data compiled by Essity, leakproof apparel has an expected annual growth rate of more than 20% for the next five years.
Other feminine care brands in Essity’s product portfolio include Libresse, Bodyform, Saba and TOM Organic, and within incontinence products with the TENA brand.
On the record
Magnus Groth, Essity President and CEO says: “Essity is now becoming the global market leader in leakproof apparel, which is an important step towards our goal of being the world’s fastest growing company in Intimate Hygiene, providing increased well-being for customers and consumers.”
Joanna Griffiths, Knix Founder & CEO shares: “As a pioneer in the reusable leakproof underwear category, it is a dream come true to partner with Essity. We both share the same goals of improving our customers’ lives and having a positive impact in the communities in which we serve. I am thrilled to begin this next chapter together and continue to build upon Knix’s terrific growth and momentum.”
Kristy Chong, Modibodi Founder and CEO adds: “I am proud of all we have created at Modibodi over the past nine years and pleased that Modibodi is joining Essity. 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.”