Hygiene and health company Essity has acquired Australian company Modibodi, a leakproof apparel company in Australia, New Zealand, and UK.
The purchase price amounts to AUD $140 million on a cash and debt free basis.
Through the acquisition, Essity will strengthen its position in leakproof apparel, the fastest growing product segment in intimate hygiene which includes feminine care and incontinence products.
Leakproof apparel has an expected annual growth rate of more than 20 per cent for the next five years.
Essity is already active in the leakproof apparel market within feminine care with brands such as Libresse, Bodyform, Saba, and TOM Organic, and within incontinence products with the TENA brand.
Magnus Groth, president and CEO of Essity, said the acquisition of Modibodi strengthens Essity’s position in leakproof apparel and enables faster growth within better-for-you, better-for-the-planet solutions.
“Modibodi has the qualities we are looking for with leading market positions, strong brand and sustainability credentials as well as excellent digital marketing and e-commerce capabilities.”
Modibodi, founded in 2013, provides leakproof apparel for periods and incontinence including underwear, swimwear, activewear, and maternity wear.
The company operates an online, direct-to-consumer business model, with growing sales in retail and through e-tailers.
In 2021, the company reported net sales of AUD $56.7m and a sales growth of 18 per cent. The EBITDA amounted to AUD $5.7 million and EBITA to AUD $5.6 million. Gross margin was high and EBITA margin amounted to 9.8 per cent.
Modibodi has 45 employees and is headquarter in Sydney, Australia.
“I am proud of all we have created at Modibodi over the past nine years and pleased that Modibodi is joining Essity,” said Kristy Chong, founder and CEO of Modibodi.
“As a global leader in hygiene and health, Essity can provide the expertise and capital to take the brand forward during its next phase of growth, and achieve even greater impact.”
The transaction is expected to be finalised in the second half of 2022.
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