Hygiene and health company Essity will acquire 80% of the Canadian company Knix Wear Inc., a leading provider of leakproof apparel for periods and incontinence. The purchase price amounts to $320 million on a cash and debt free basis for 80% of the company. Through the acquisition Essity will become the global market leader within leakproof apparel, the fastest growing product segment in Intimate Hygiene which includes feminine care and incontinence products.
Leakproof apparel has an expected annual growth rate of more than 20% for the next five years**. Essity is already active in the leakproof apparel market within feminine care with brands such as Libresse, Bodyform, Saba and TOM Organic, and within Incontinence Products with the TENA brand. Additionally, the company has already agreed to purchase Australia-based leakproof apparel brand Modibodi.
“I am delighted to welcome Knix to 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,” says Magnus Groth, president and CEO of Essity.
Knix was founded in 2013 by CEO Joanna Griffiths with the mission to redefine intimates. Knix and its teen brand, Kt by Knix, offer a broad assortment of intimate apparel with leading positions in the growing leakproof apparel category. The company has strong presence in US and Canada and sells mainly direct-to-consumer through online channels, supplemented by six Knix retail stores. Essity acquires 80% of the shares in Knix. Joanna Griffiths will hold the remaining 20% share and will stay on as president of Knix. The total enterprise value of Knix amounts to $400 million.
In 2021, the company reported net sales of a little over $100 million and a sales growth of 97%. The EBITDA amounted to $10 million. The gross margin was high and EBITA margin amounted to 10.0%. Knix has approximately 200 employees and headquarter in Toronto, Canada.
“As a pioneer in the reusable leakproof underwear category, it is a dream come true to partner with Essity. We both share the same goals of improving our customers' lives and having a positive impact in the communities in which we serve. I am thrilled to begin this next chapter together and continue to build upon Knix’s terrific growth and momentum,” says Griffiths.
The transaction is subject to customary regulatory approvals and is expected to be finalized in the second half of 2022.
