Essity is divesting its 50% stake in the partly owned company SCA Yildiz in Turkey to its partner Yildiz. SCA Yildiz is primarily active in baby care products. In 2018, the company reported net sales of SEK 364m or $37 million. The divestment gives rise to a currency related loss of approximately SEK 150 million or $15 million, which will be recognized as an item affecting comparability in the second quarter of 2019. This will not impact cash flow or shareholders’ equity.
The transaction is subject to customary regulatory approval by the competition authorities and is expected to be finalized in the second quarter of 2019.
Essity will retain a presence in Turkey through its wholly owned professional hygiene, incontinence products and medical solutions operations.Yildiz makes baby wipes, baby diapers, feminine hygiene items and adult inco products under brand names including Baby Star, Love Baby and Komili.