Sweden's Essity has agreed to buy 80% of Canadian company Knix Wear, a maker of leakproof apparel for periods and incontinence, for around SEK 3.3 billion (€310 million).
Essity said in a statement the acquisition would make it a leader in the burgeoning leakproof apparel sector, predicting the market segment would grow by more than 20% annually in the next five years, excluding Asia.
'Impressive Track Record'
“I am delighted to welcome Knix to Essity," commented Magnus Groth, president and CEO of Essity.
"It’s a successful company with an impressive track record. Essity is now becoming the global market leader in leakproof apparel, which is an important step towards our goal of being the world’s fastest growing company in intimate hygiene, providing increased well-being for customers and consumers."
The world's second-biggest consumer tissue maker this week announced it had agreed to buy Australian leakproof apparel maker Modibodi.
It already offers leakproof wear under feminine care brands such as Libresse and Bodyform, and within incontinence products with its TENA brand.
'Share The Same Goals'
“As a pioneer in the reusable leakproof underwear category, it is a dream come true to partner with Essity," said Joanna Griffiths, founder and CEO of Knix. "We both share the same goals of improving our customers' lives and having a positive impact in the communities in which we serve."
In 2021, Knix reported net sales of CAD 133.6m (approximately SEK 914m) and sales growth of 97%.
Essity expects to finalise the acquisition in the second half of the year.