Essity is divesting its 50% stake in the partly owned company SCA Yildiz in Turkey to the other part owner Yildiz.
SCA Yildiz is primarily active in Baby Care products. In 2018, the company reported net sales of SEK 364m (TRY 197m). The divestment gives rise to a currency related loss of approximately
SEK 150m, which will be recognized as an item affecting comparability in the second quarter of 2019. This will not impact cash flow or shareholders’ equity.
The transaction is subject to customary regulatory approval by the competition authorities and is expected to be finalized in the second quarter of 2019.
Essity will retain a presence in Turkey through its wholly owned Professional Hygiene, Incontinence Products and Medical Solutions operations.
Essity is a leading global hygiene and health company dedicated to improving well-being through products and services, essentials for everyday life. The name Essity stems from the words essentials and necessities. Our sustainable business model creates value for people and nature. Sales are conducted in approximately 150 countries under the leading global brands TENA and Tork, and other strong brands, such as JOBST, Leukoplast, Libero, Libresse, Lotus, Nosotras, Saba, Tempo, Vinda and Zewa. Essity has about 47,000 employees and net sales in 2018 amounted to approximately SEK 118.5bn (EUR 11.6bn). The headquarters is located in Stockholm, Sweden, and the company is listed on Nasdaq Stockholm. More information at www.essity.com.