The leakproof underwear market has exploded in recent years. Earlier this year, Retail Beauty reported that personal care titan, Kimberly-Clark, had acquired a majority stake in Thinx, a US leader in the global reusable period and incontinence underwear category.
Modibodi, the leading Aussie contender in the sector, is also an international player in the surging market with annual sales of $56.7 million in 2021.
Launched in 2013 by Kristy Chong, Modibodi markets its products mainly through a DTC business model and a growing number of retailers including The Iconic, Coles and Big W.
Essity, the Swedish hygiene and health company, has acquired Modibodi in a deal worth $140 million. The acquisition values the brand at an optimistic 24 times EBITDA because of its 18 per cent annual growth rate.
Essity has plenty of skin in the leakproof underwear and feminine hygiene game with its strong portfolio of brands, including Libresse, Bodyform, TOM Organic and TENA. In a one-two move, the Swedish mover-and-shaker also bought an 80 per cent stake in Canadian company, Knix Wear, last week, which was recently named the sixth fastest growing company in Canada.
I am proud of all we have created at Modibodi over the past nine years and pleased that Modibodi is joining Essity, says Kristy Chong. “As a global leader in hygiene and health, Essity can provide the expertise and capital to take the brand forward during its next phase of growth, and achieve even greater impact.”
“The acquisition of Modibodi strengthens Essity’s position in leakproof apparel and enables faster growth within better-for-you, better-for-the-planet solutions,” adds Magnus Groth, CEO of Essity.
“Modibodi has the qualities we are looking for with leading market positions, strong brand and sustainability credentials, as well as excellent digital marketing and e-commerce capabilities.”
Read the current issue of our digital magazine below:
- For more news and updates, subscribe to our weekly newsletter
- Follow us on Instagram
- Like us on Facebook
- Connect with us on LinkedIn
- Subscribe to our print magazine