Essity divests Russian operations
The company did not disclose who bought its Russian assets or for what amount
The Swedish hygiene and health company, Essity, announced last weekend that it signed an agreement to divest its operations in Russia. As noted in the company’s press release, Russian authorities have already approved the deal, which is expected to be finalized during the second quarter of 2023.
The company did not disclose who bought its Russian assets or for what amount.
Essity said it began work in April 2022 to exit the Russian market and in 2022 an impairment was carried out of the company’s assets in the country of approximately SEK 1.7bn.
In 2022, Essity’s net sales in Russia amounted to approximately 2% of the Group’s total net sales.
The total earnings impact will be reported when the transaction is finalized but is not expected to have a material financial impact.
Since Russia launched its invasion of Ukraine last year, many of foreign companies, including UPM, have joined a corporate exodus as Western nations have imposed sanctions on the country.
