Essity Finalises Russian Market Divestment

Essity Finalises Russian Market Divestment

THE WHAT? Essity, a renowned hygiene and health company, has concluded the divestment of its operations in Russia, thereby exiting the Russian market. The transaction was completed for a purchase price of approximately SEK 1.2 billion on a cash and debt-free basis.

THE DETAILS? The decision to exit the Russian market was initiated by Essity in April 2022, followed by an impairment of the company’s assets in Russia of approximately SEK 1.7 billion in the same year. The Russian operations, which in 2022 corresponded to around 2% of Essity’s total consolidated net sales, have now been acquired by New Technologies LLC, owned primarily by Igor Shilov.

THE WHY?  Essity’s exit from Russia is a response to the ongoing conflict between Russia and Ukraine. As stated by Essity’s CEO, Magnus Groth, the divestment of their Russian business, though a lengthy and complex process, is a strategic move made in reaction to the geopolitical situation.