Categories: Business

Edgewell divests unit behind Stayfree, Playtex to Sweden's Essity for $340 million

(Reuters) -Edgewell Personal Care has agreed to sell its North American feminine care business, which includes the likes of Stayfree sanitary napkins, to Swedish health and hygiene firm Essity for $340 million, the U.S. consumer products firm said on Wednesday.  The company, whose sunscreen brands include Banana Boat and Hawaiian Tropic, said the divestment would help the firm focus on its core categories and strengthen its financial position.  American personal care companies have been pressured by the Trump administration's ever-changing tariff policies, especially on goods imported from China, a major supplier for chemicals used in beauty products.    In August, Edgewell cut its annual profit outlook and missed third-quarter sales and profit estimates against this tough backdrop for consumer spending in the U.S.   Edgewell's feminine products unit, which retails in supermarket giants like Walmart and Target, houses Carefree and Stayfree brands in North America and the feminine and hygiene products arm of Playtex. The company expects an impact of 40 cents to 50 cents in adjusted profit on an annualized basis from the sale of the unit, which will help Essity expand its market share in the U.S. market.   The deal, which is expected to close in the first quarter of 2026, comes weeks after Essity said it would undertake cost-cutting measures amid a weak consumer environment, which would include an unspecified number of job cuts and a split of its tissue business from its personal care unit.   (Reporting by Prerna Bedi in Bengaluru; Editing by Alan Barona)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

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