Edgewell Personal Care Company completed the sale of its feminine‑care division to Essity on February 2, 2026, a transaction announced the following day. The deal, valued at $340 million in cash and debt‑free terms, transfers ownership of the Carefree, Stayfree and o.b. brands in North America and the global rights to the Playtex brand to Essity.
The feminine‑care segment represented roughly 12 % of Edgewell’s 2025 sales, generating $261 million in net sales and an operating profit of $17 million for the 12 months ending June 30, 2025. That profit fell 43 % from the prior year, underscoring the segment’s declining profitability and its misalignment with Edgewell’s higher‑margin focus. The sale removes a business that has become a drag on earnings while freeing capital for core growth areas.
Edgewell’s president and CEO Rod Little said the divestiture is a key step in the company’s transformation. “By shedding the feminine‑care unit, we sharpen our focus on shave, sun and skin‑care, strengthen our balance sheet, and reduce debt,” he said. The proceeds will be used to pay down the U.S. revolving credit facility and invest in innovation and marketing for the company’s core brands.
Essity’s president and CEO Ulrika Kolsrud highlighted the strategic fit of the acquisition. “Adding Carefree, Stayfree, o.b. and Playtex expands our North American footprint and positions us for accelerated growth in a high‑margin category,” she said. Essity expects run‑rate synergies of roughly 8.3 × EBITDA on a pro‑forma basis, which should enhance profitability and market share in the region.
The transaction includes a one‑year transition services agreement that covers accounting, IT, operations and sales functions, ensuring a smooth handover. Edgewell will use the proceeds to strengthen its balance sheet, retire debt, and fund core business initiatives, while Essity will integrate the brands into its existing portfolio and pursue the projected synergies.
The sale follows Edgewell’s Q4 FY2025 earnings, where the company missed EPS expectations by $0.14 but beat revenue estimates, reflecting a mix of pricing power and cost pressures. Essity’s Q4 2025 results showed margin expansion and a 14.7 % adjusted EBITA margin, indicating that the acquisition aligns with its profitability strategy. Together, the deal positions both companies for stronger financial health and growth in their respective focus areas.
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