Solaris snaps up Asaleo Care for $180m
Tissue and toilet paper producer Solaris Paper has this morning announced it will acquire leading Australian tissue brand Asaleo Care for $180 million.
Solaris Paper will obtain complete ownership of Asaleo Care’s Australian brands which include, Sorbent toilet and facial tissue, Purex, Handee Ultra paper towel and Deeko serviettes and disposable kitchenware.
Asaleo Care revealed in July that it was facing a challenging year due to higher pulp prices and energy costs, and in October warned that it may sell its brands after hiring Luminis Partners for a strategic review.
Solaris Paper produces and distributes toilet and tissue paper brands Livi and Emporia throughout the Australasia region.
“Solaris Paper’s advanced converting processes and deep vertical integration are an ideal match for the strong market position that Asaleo Care brands have built and maintained in Australia,” said Solaris Paper ANZ CEO Paul Tonkin. “We expect this deal will create considerable commercial synergies, allowing us to deliver quality products our customers have come to expect, with greater efficiency and reliability.”
Asaleo Care CEO and managing director Sid Takla said, “The objectives of the strategic review were firstly, to drive profitable growth through our brands by being more consumer and customer focused and second, to build a resilient business model that delivers sustainable, long-term growth. We believe this transaction delivers on both objectives. The core Personal Care and B2B brands and businesses offer higher margins, stronger sales growth and less volatile returns.”