8 Jul 2022
Essity acquires 80% stake in Knix for USD 320m
Essity, a hygiene and health company, completed the acquisition of 80% of Knix Wear Inc., a Canadian leader in leakproof apparel for menstrual and incontinence needs, for CAD 423 million (USD 320 million) on a cash and debt free basis. This move positions Essity as the anticipated global market leader in leakproof apparel, a segment expected to grow over 20% annually for the next five years. Essity's presence in the market includes brands such as Libresse, Bodyform, Saba, TOM Organic, and TENA.
Essity's President and CEO, Magnus Groth, expressed excitement over the acquisition, aligning it with the company's ambition to be the fastest growing entity in Intimate Hygiene and to enhance well-being for customers. Founded in 2013 by Joanna Griffiths, Knix has established a strong online direct-to-consumer presence, particularly in the US and Canada, along with six retail stores. Despite selling 80% of its shares to Essity, Griffiths retains a 20% stake and will continue as President of Knix.
The transaction values Knix at CAD 550 million (USD 400 million), with the company boasting net sales of CAD 133.6 million and significant growth and profitability, including an EBITA margin of 10%. With around 200 employees, Knix's headquarters are in Toronto, Canada. Joanna Griffiths celebrated the partnership, emphasizing shared goals of improving customer lives and positive community impact.
