Acquisitions, investments and divestments
Company acquisition in Peru and Bolivia
On February 16, 2018, Familia, in which Essity has a 50% stake, acquired the remaining 50% of the company Productos Sancela del Peru with operations in Peru and Bolivia. The consideration transferred amounted to SEK 310m. Essity has consolidated Productos Sancela del Peru as a subsidiary with a non-controlling interest. Prior to the acquisition, the company was consolidated as an associate according to the equity method. The previously owned share of equity was remeasured at fair value in the amount of SEK 225m and recognized as an item affecting comparability in the income statement.
Company acquisition in Ecuador
On April 3, 2018, Familia, in which Essity has a 50% stake, acquired the company Industrial Papelera S.A. (INPAECSA) with operations in Ecuador. The consideration transferred amounted to SEK 68m.
Essity strengthens Professional Hygiene in Europe
On February 22, 2018, Essity announced the company’s decision to invest in creating a center for napkin production at the existing production facility in Altopascio, Italy. The investment will further strengthen the competitiveness of Professional Hygiene in Europe. The investment will lead to restructuring measures at multiple production facilities across Europe in the coming years. The total investments will amount to approximately SEK 590m, of which the majority is related to investments in Altopascio, Italy.