Australian leakproof apparel company to facilitate growth in sustainable hygiene
Hygiene and health company Essity will acquire Modibodi, a leading leakproof apparel company in Australia, New Zealand and U.K. The purchase price amounts to nearly $94 million (AUD 140 million/SEK 985 million) on a cash and debt-free basis. Through the acquisition, Essity will strengthen its position in 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.
“The acquisition of Modibodi strengthens Essity’s position in leakproof apparel and enables faster growth within better-for-you, better-for-the-planet solutions. Modibodi has the qualities we are looking for with leading market positions, strong brand and sustainability credentials as well as excellent digital marketing and e-commerce capabilities,” says Magnus Groth, president and CEO of Essity.
Modibodi, founded in 2013, provides leakproof apparel for periods and incontinence including underwear, swimwear, activewear and maternity wear. The company operates an online, direct-to-consumer business model, with growing sales in retail and through e-tailers. These products feature patented Modifer Technology, which was developed with founder Kristy Chong in partnership with chemical textile engineers, garment developers, textile mills and scientists.
In 2021, the company reported net sales of $34.5 million (AUD 56.7 million/SEK 365 million) and a sales growth of 18%. The EBITDA amounted to $3.5 million (AUD 5.7million/SEK36 million). Gross margin was high and EBITA margin amounted to 9.8%. Modibodi has 45 employees and headquarter in Sydney, Australia.
“I am proud of all we have created at Modibodi over the past nine years and pleased that Modibodi is joining Essity. As a global leader in hygiene and health, Essity can provide the expertise and capital to take the brand forward during its next phase of growth, and achieve even greater impact,” says Chong, founder.
The transaction is expected to be finalized in the second half of 2022. Earlier this year, Modibodi teamed up with sports company Puma to develop a range of leak-free period underwar and activewear to help women stay comfortable and active during their period while making a positive impact on the environment.
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