Essity acquires distribution rights to Sorbact in Australia and New Zealand

Rhea-AI Summary

Essity has acquired the distribution rights to Sorbact® wound care technology in Australia and New Zealand from Bayport Brands. In 2020, Sorbact® sales in this region reached AUD 1.7 million (approx. SEK 11 million). This acquisition is part of Essity's strategy to enhance its presence in the advanced wound care market, where it has shown promising sales growth. Sorbact® is known for its innovative approach in wound treatment, effectively binding bacteria and fungi while being non-toxic. Essity acquired 75% of Abigo Medical, the manufacturer of Sorbact®, in February 2020.

Positive

• Acquisition of distribution rights to Sorbact® enhances Essity's market presence in Australia and New Zealand.
• Sorbact® sales in the region amounted to AUD 1.7 million in 2020, indicating a solid entry point for revenue generation.
• The acquisition aligns with Essity's strategy to grow in advanced wound care, which has demonstrated organic sales growth.

Negative

• None.

STOCKHOLM, April 6, 2021 /PRNewswire/ -- The leading global hygiene and health company Essity is acquiring the distribution rights to the wound care technology Sorbact^® in Australia and New Zealand from the Australian company Bayport Brands. In 2020, sales of Sorbact^® in the region amounted to AUD 1.7m (approximately SEK 11m). 

"This acquisition underlines our ambition to accelerate growth in advanced wound care, where we showed good organic sales growth during the second half of 2020. It is also a good fit for our strategy to establish a stronger presence in Australia and New Zealand, where we - in addition to our successful Medical Solutions operations - are also in the final phase of the acquisition of Asaleo Care," says Magnus Groth, President and CEO of Essity.

Sorbact^® is a clinically established innovation for advanced wound care, which is manufactured and marketed by Abigo Medical. Essity acquired 75% of Abigo Medical in February 2020. 

Sorbact^® is used in wound care products to prevent and treat infections. It does this using a natural mode of action that binds bacteria and fungi. Sorbact^® does not contain antiseptics or other toxic substances, which is positive for both the patient and the environment. 

For further information, please contact:
Per Lorentz
Vice President Corporate Communications
+46 8 788 52 51
per.lorentz@essity.com 

Johan Karlsson
Vice President Investor Relations
+46 8 788 51 30
johan.ir.karlsson@essity.com 

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Essity acquires distribution rights to Sorbact in Australia and New Zealand

 

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SOURCE Essity

FAQ

What are the details of Essity's acquisition of Sorbact® in Australia and New Zealand?

Essity acquired the distribution rights to Sorbact® wound care technology from Bayport Brands, with sales in 2020 reaching AUD 1.7 million.

How will the acquisition of Sorbact® impact Essity's business strategy?

The acquisition aims to accelerate growth in advanced wound care and strengthen Essity's presence in the Australian and New Zealand markets.

Who manufactures Sorbact® and what is its significance?

Sorbact® is manufactured by Abigo Medical, and it is significant for its natural mode of action in preventing and treating wound infections.

What was the sales performance of Sorbact® in Australia and New Zealand in 2020?

Sales of Sorbact® in Australia and New Zealand amounted to AUD 1.7 million in 2020.

When did Essity acquire 75% of Abigo Medical?

Essity acquired 75% of Abigo Medical in February 2020.