STOCKHOLM - Hygiene and health company Essity has exited the Russian market after completing the divestment of its operations in the country for a purchase price of approximately SEK 1.2 billion on a cash and debt-free basis.

Essity began work to exit the Russian market in in April 2022 with an impairment carried out of the company’s assets in Russia of approximately SEK 1.7 billion.

“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 the company 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.