Personal hygiene company, Asaleo Care (ASX:AHY) has penned an agreement to buy organic feminine hygiene company TOM Organic for $12.75 million.
Asaleo Care’s CEO and Managing Director, Sid Takla, says “TOM’s much-loved brand, sustainable product range, innovation pipeline, and digital and e-commerce capabilities align strongly with the company’s strategy to operate in higher growth, higher margin personal care categories.”
He believes “TOM Organic delivers profitable product diversification and significant additional financial benefits by leveraging [the company’s] existing scale and supply capabilities.”
The transaction is subject to conditions including ACCC clearance.
In addition, Asaleo has received an unsolicited, indicative, conditional and non-binding proposal from the ultimate parent of its major shareholder, Essity. Shareholders are advised to take no action while a committee of the Board considers the offer.
Shares in Asaleo Care (ASX:AHY) are trading 0.37 per cent lower at $1.34.