Essity Acquires Advanced Wound Care Company – Nonwovens Industry Magazine

The hygiene and health company Essity has acquired the company Hydrofera. The company offers technologies and products in the field of advanced wound care. The purchase price is $116 million (approximately SEK 1.1 billion) with an additional potential earnout of $15 million (approximately SEK 137 million) on a cash-and-debt free basis. The acquisition supports Essity’s strategic priority to grow through acquisitions in Medical Solutions.

The American company Hydrofera was founded in 1996 and is a developer of the antibacterial dressings Hydrofera Blue, an advanced line of wound care products designed to shorten healing times, reduce treatment costs and provide better patient outcomes. The company, which has approximately 90 employees, is headquartered in Manchester, CT, and has a presence in more than 15 countries.

For the first nine months of 2021, Hydrofera recorded net sales of $20.7 million (SEK 176 million) with an EBITDA of $5.9 million (SEK 50 million), an EBITA of 5.6 million dollars (48 million SEK), representing an EBITA margin of 27.2%. Sales growth for the first nine months of 2021 was 22%. In 2020, the company recorded net sales of approximately $23.5 million (SEK 216 million), with an EBITDA of $4.6 million (SEK 42 million) and an EBITA of 4.3 million. (39 million SEK), representing an EBITA margin of 18.1%. Sales growth in 2020 amounted to 13%. The acquisition is expected to be accretive to Essity’s earnings per share in 2022.

“The acquisition of Hydrofera is another strategic asset for Essity, further strengthening our capacity for innovation and expanding our offering in the field of advanced wound care. The company has innovations that dramatically speed recovery and reduce patient discomfort,” said Ulrika Kolsrud, President of Medical and Healthcare Solutions at Essity.

Hydrofera has a direct sales force and maintains agreements and preferred supplier status with major national medical/surgical distributors and buying groups in the US and Canadian healthcare markets. The products are used across the full spectrum of care such as hospitals, wound clinics, long term care facilities and home care. The product line is designed to meet the demands of a wide variety of wound care needs.