Sweden's Essity acquires wiping & cleaning firm Legacy Converting

The purchase price amounts to $40m (approximately SEK 370m) with a potential additional earnout amount of $10m (approximately SEK 90m) on a cash and debt-free basis. Essity is the world's largest supplier of products and services in the market for professional hygiene with its leading Tork brand. Legacy Converting was founded in 2004 and manufactures the Everwipe brand of roll and folded wipes in a variety of formats, including pop-up canister, bucket and resealable packs. Customers are mainly found in the industrial and office supply, public interest, commercial and healthcare market segments, Essity said in a press release.

For the first nine months of 2021, Legacy Converting reported net sales of $15.1m (SEK 140m) with an adjusted EBITDA of $2.5m (SEK 24m), an adjusted EBITA of $1.8m (SEK 16m), equivalent to an adjusted EBITA margin of 11.7 percent. Sales growth for the first nine months of 2021 amounted to -49 percent, following extraordinary sales growth in 2020 as a result of Covid-19 driven demand. In 2020, the company reported net sales of $39m (SEK 362m), an adjusted EBITDA of $12.1m (SEK 112m) and adjusted EBITA of $11.8m (SEK 109m) equivalent to an adjusted EBITA margin of 30 per cent. Sales growth in 2020 amounted to 183 per cent.

"As a leading global hygiene and health company, we are committed to offering innovative sustainable hygiene products and services. With the acquisition of Legacy Converting, Inc. we will expand our wiping and cleaning product offering and further strengthen our presence in key customer segments in the North American market", Don Lewis, president professional hygiene, Essity said.

Essity’s professional hygiene business comprises complete hygiene solutions, including toilet paper, paper hand towels, napkins, hand soap, hand lotion, hand sanitizers, dispensers, wiping and cleaning products as well as service and maintenance under the globally leading Tork brand.

Fibre2Fashion News Desk (GK)