Essity acquires remaining shares in ABIGO Medical AB
STOCKHOLM, April 27, 2021 /PRNewswire/ -- Hygiene and health company Essity has signed an agreement today to acquire the remaining 25% of the shares in the Swedish medical solutions company ABIGO Medical AB. Essity acquired 75% of ABIGO Medical in February 2020. Following the acquisition, ABIGO Medical will be a wholly owned subsidiary of Essity in the product category Medical Solutions. The shares are being acquired from founder and chairman of the board Jan G. Smith at a valuation of SEK 900m for 100% of the company on a debt-free basis.
"We are very pleased with this acquisition, which is a natural step in our ambition to strengthen our positions in medical solutions. ABIGO has unique expertise and innovation capacity that will contribute to accelerating Essity's growth in advanced wound care," says Magnus Groth, President and CEO, Essity.
ABIGO Medical AB is a Swedish medical solutions company with its head office in Gothenburg, Sweden, and was founded in 1989 by the brothers Jan G. and Leif Smith. The company has about 170 employees. ABIGO Medical AB develops, manufactures and markets products including the Sorbact® technology, which is a clinically established innovation for advanced wound care. In the first quarter of 2021, Essity's organic net sales in wound care increased 2.1%.
In parallel with the acquisition, a process is under way to streamline ABIGO Medical's operations. The parties have concluded an agreement in principle under which Jan G. Smith will, in the near future, acquire the pharma business comprising products such as ear and eye care as well as vitamins.
"I have had a close relationship with Essity for many years and I am very confident that this is the right step in ABIGO's journey of growth," says Jan G. Smith.
Essity's acquisition will be finalized in May 2021.
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Company Codes: Bloomberg:ESSITYB@SS, ISIN:SE0009922164, RICS:ESSITYB.ST, Stockholm:ESSITYB