Acquisitions, investments and divestments
Divestment of jointly owned company in Turkey
In 2019, Essity divested its 50% stake in the jointly 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 resulted in a currency-related loss of approximately SEK 150m, which was recognized as an item affecting comparability in the third quarter of 2019. This did not affect cash flow or shareholders’ equity. The transaction was finalized on July 12, 2019.
Essity will retain a presence in Turkey through the company’s wholly owned Professional Hygiene, Incontinence Products and Medical Solutions operations.
Investments in sustainable alternative fiber technology
On May 23, 2019, Essity announced the company’s decision to invest approximately SEK 400m in an integrated facility for the production of pulp based on alternative fiber from plant-based agricultural by-products. The investment is taking place at Essity’s tissue production plant in Mannheim, Germany.