Essity acquires 80% of Knix leakproof apparel with US$320M cash-free
08 Jul 2022 --- Essity is acquiring 80% of Knix, a provider of leakproof clothing for menstruation and incontinence. On a cash and debt-free basis, the purchase price for 80% of the company amounts to US$320 million.
Speaking with PersonalCareInsights, Per Lorentz, vice president of corporate communications at Essity, tells about the market for leakproof apparel saying it “has an expected annual growth rate of more than 20% for the next five years.”
This affords Essity a global reach in providing leakproof apparel, which is noted to be the fastest-growing product segment in intimate hygiene, including feminine care and incontinence products.
Joanna Griffiths, CEO and founder of the Canadian company Knix, aimed to redefine intimates. Knix offers a diverse range of intimate apparel in the expanding leakproof apparel category. Griffiths will retain her position as president of Knix after Essity acquires the shares in the company. Additionally, Knix has a total enterprise value of US$400 million.
This comes as the US faced a tampon and pad shortage as supply chain issues hit the sector last month. In a response letter to the crisis, US Senator Maggie Hassan placed pressure on Procter & Gamble, Edgewell Personal Care and Kimberly-Clark – major US tampon manufacturers.
Access to hygiene and health products is essential for people across the world, Lorentz says.A market expansion
Lorentz explains that: “Essity is already present in this fast-growing product segment, but with a very small market share compared to Knix, and this acquisition speeds up the transformation to be the global leader.”
Essity’s current feminine care brands active in the market include Libresse, Bodyform, Saba and TOM Organic and incontinence products such as the Tena brand.
Becoming a global market leader, according to Magnus Groth, president and CEO atEssity, “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.”
Knix was founded in 2013 by CEO Joanna Griffiths The company has a strong presence in the US and Canada and sells mainly direct-to-consumer through online channels, supplemented by six Knix retail stores.
Essity’s environmentally friendly hygiene
Griffiths explains that the partnership with Essity is very positive as the two companies have compatible environmental sustainability aims. “We both share the same goals of improving our customers’ lives and having a positive impact on the communities in which we serve,” she says.
Lorentz elaborates on this and explains Essity’s belief “that access to hygiene and health products is essential for people across the world. Essity offers a broad product portfolio in Feminine Care that includes leakproof apparel, reusable menstrual cups, pads, panty liners, tampons, intimate soaps and intimate wipes.”
Essity offers a broad product portfolio in Feminine Care including menstrual cups.
“Essity aims to take responsibility for the whole life cycle, even after the products are used. Making single-use products thinner and using fewer materials is one example of reducing waste and driving a change in consumer behavior,” he concludes.
The transaction is subject to customary regulatory approvals and is expected to be finalized in the second half of 2022.
Essity’s involvement in feminine hygiene awareness
Essity and UNICEF Mexico have launched an initiative called “hygiene is our right” to raise awareness of the importance of good hygiene. Essity has many local initiatives around the world, and its partnership with UNICEF is one of those.
The initiative focuses on feminine care and discomfort regarding menstruation and the project aims to highlight children’s rights and educate young people in relation to health and gender equality. The general knowledge of menstruation is low and in order to prevent discrimination and improve women’s rights, the company believes this will need to change.
By Mieke Meintjes
