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    Breaking News

    Essity Buys Majority Stake in ABIGO Medical

    Swedish medical solutions company develops products for advanced wound care

    02.27.20
    Hygiene and health company Essity has signed an agreement to acquire 75% of the Swedish medical solutions company ABIGO Medical AB. The company as a whole is valued at SEK 900 million on a debt-free basis. ABIGO Medical develops, manufactures and markets products including the Sorbact technology, which is a clinically established innovation for advanced wound care. Jan G. Smith will retain a 25% stake in the company and remain as chairman of the board.

    ABIGO Medical is a Swedish company with its head office in Gothenburg, Sweden, and was founded in 1989 by the brothers Jan and Leif Smith. The company has about 170 employees and reported net sales of approximately SEK 403 million in 2019. ABIGO Medical is currently a key partner and sub-supplier to Essity.

    “The acquisition is a good strategic fit for Essity and strengthens the innovation capacity of our Medical Solutions business. ABIGO Medical has leading innovations in advanced wound care that reduce the spread of bacteria without increasing resistance to antibiotics,” says Magnus Groth, president and CEO of Essity.

    “Essity’s values and strategy are well aligned with ABIGO’s ambitions for the future and with Essity as a partner, we believe there is great potential to continue our shared journey of growth,” says Jan G. Smith.

    Sorbact is a technology that Essity, through ABIGO Medical, already uses in its wound care products to prevent and treat infections. It does this using a natural mode of action that binds bacteria and fungi. Sorbact does not contain antiseptics or other toxic substances, which is positive for both the patient and the environment.

    The completion of the transaction is subject to customary regulatory approvals and closing is expected to take place during the second quarter of 2020.
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