Essity is preparing to launch a potential sales process for its Consumer Tissue business as early as October, with industry players and private equity firms expected to be invited to submit bids, Bloomberg reported on September 15, citing people familiar with the matter.
The business, which manufactures toilet paper, tissues and napkins under brands including Lotus, Tempo and Cushelle, could be valued at between €2.5 billion and €3 billion, according to the report. A transaction could be completed in the first half of 2027.
Essity has not announced a decision to sell the business. The reported preparations follow the company’s strategic review of Consumer Tissue, announced in May.
STRATEGIC REVIEW
In May, Essity announced that it had initiated a strategic review of its Consumer Tissue business to evaluate different ownership alternatives. The review is expected to be completed during the first half of 2027 and could result in the separation of the business.
According to the company, the process is intended to assess the optimal ownership structure for Consumer Tissue as Essity continues to focus on its health and hygiene businesses.
Consumer Tissue is Essity’s largest business by sales, generating SEK 43.5 billion in net sales in 2025, equivalent to 31% of the group’s total. Its EBITA margin was 11.9%, below the levels reported by Essity’s other business areas.
The business employs approximately 13,000 people and operates 29 production facilities. Essity is the market leader in consumer tissue in Europe and the second-largest player in Latin America.
POTENTIAL BUYERS
According to Bloomberg, both strategic industry players and private equity firms are expected to be invited to participate in the potential sale process.
The reported valuation of €2.5 billion to €3 billion would place one of Europe’s major consumer tissue businesses on the market. The process could therefore attract interest from established tissue producers seeking to expand their geographic footprint or branded consumer tissue operations, as well as from financial investors.
The potential sale also comes after activist investor Cevian Capital acquired a minority stake in Essity. Bloomberg linked the preparation of the potential sales process to this development, although Essity has not indicated that the stake directly triggered the strategic review.
Essity’s strategic review remains ongoing, and any transaction would depend on the outcome of the process and the necessary corporate approvals.
