Essity has signed an agreement for the divestment of its Russian operations and the transaction has now been approved by authorities.
The deal is expected to be finalised during the second quarter of 2023 and means Essity will soon exit the Russian market, where it has three production plants.
The name of the buyer was not disclosed.
Essity began to exit the Russian market in April 2022 and in 2022 an impairment was carried out of the company’s assets in Russia of approximately SEK1.7bn.
In 2022, the company’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 finalised, but Essity said it is not expected to have a material financial impact from the winding down of the Russian business.