Essity Buys Brazil Feminine Care Business for $284M

Essity, a global leader in hygiene and health, has significantly expanded its footprint in the Brazilian feminine care market through a strategic acquisition. The company has agreed to purchase the feminine care division of Kenvue in Brazil, a move that solidifies its market leadership in Latin America's substantial hygiene sector. This transaction, valued at USD 284 million on a cash and debt-free basis, brings prominent brands such as Carefree, Sempre Livre, and o.b. under Essity's umbrella.

The deal encompasses the acquisition of intellectual property rights for these leading sanitary pad, liner, and tampon brands, alongside associated manufacturing assets located within Brazil. This acquisition is a key component of Essity's broader strategy to accelerate growth in its most profitable product categories. Brazil, a market of considerable scale and potential within the global hygiene industry, represents a significant opportunity for Essity, which already commands a strong position in the country's incontinence product segment with its TENA brand.

The acquired business demonstrated robust performance, generating net sales of approximately BRL 800 million (roughly SEK 1.4 billion) for the twelve-month period concluding June 30, 2026, and reporting healthy profitability. This financial strength underscores the strategic value of the acquisition for Essity, enhancing its competitive standing in a dynamic consumer market. The Brazilian feminine care market is notably one of the largest globally, ranking fourth in size, making this expansion particularly impactful.

This acquisition follows Essity's recent strategic moves, including the February 2026 purchase of the Carefree, Stayfree, and o.b. brands in North America from Edgewell Personal Care. These consistent investments highlight Essity's commitment to strengthening its global feminine care portfolio and leveraging its established brand equity across diverse geographical regions. The company's existing portfolio includes well-recognized brands like Libresse, Bodyform, Nana, Saba, Libra, and Nosotras.

The transaction is contingent upon receiving regulatory clearance in Brazil and satisfying other standard closing conditions. Furthermore, its finalization is linked to the successful completion of the broader transaction between Kimberly-Clark and Kenvue. The anticipated closing date for this significant deal is set for the second quarter of 2027, allowing ample time for all regulatory and procedural requirements to be met.

This strategic acquisition by Essity is expected to create significant synergies and further enhance its competitive edge in the Latin American feminine care sector. The integration of these established brands and manufacturing capabilities will enable Essity to better serve Brazilian consumers and capitalize on the region's growing demand for high-quality hygiene products. The company's existing infrastructure in Brazil, including its TENA production facility, provides a solid foundation for integrating and expanding the newly acquired business.