Essity Out of the Russian Market, Upstate New York

STOCKHOLM – Essity, a hygiene and health company, has completed the divestment of its operations in Russia for a purchase price of approximately $120 million on a cash and debt-free basis. It has thus exited Russia.

Essity began work in April 2022 to exit the Russian market after the invasion of Ukraine, and in 2022 an impairment was carried out of the company’s assets in Russia of approximately $170 million.

“Ever since the start of Russia’s war against Ukraine, we have been fully focused on exiting Russia. Today, we have completed the divestment of our business following a long and complex process,” said Magnus Groth, President and CEO of Essity.

In 2022, Essity’s net sales in Russia corresponded to about 2% of its total consolidated net sales.

The buyer is New Technologies LLC, with the principal owner Igor Shilov. The earnings impact, including accumulated currency translation differences, amounts to approximately SEK -0.5bn and will be reported as an item affecting comparability in the third quarter of 2023. 

The total earnings impact will be reported when the transaction is finalized but is not expected to have a material financial impact.

Also, this week, the company closed its paper mill in South Glenns Falls in Upstate New York. The mill closed on Thursday, while the Greenwich converting facility and Saratoga Springs warehouse/distribution center will stay open “as long as needed to ensure a smooth transition for customers,” according to the company.

The converting facility processes the paper into consumer-sized toilet paper rolls.

Layoffs at the Greenwich and Saratoga Springs locations will begin at later dates.

All employees will receive at least 90 days’ notice of the date of their layoff.

In addition, Essity will provide impacted employees with a severance package and an opportunity to apply for and transfer to other Essity manufacturing facilities.

For more, go to essity.com.