Essity runs dual-track process to divest Consumer Tissue arm
Essity is advancing a sale-or-spin-off process for its Consumer Tissue division, home to the Lotus, Tempo and Cushelle brands, with Morgan Stanley advising on options including an external sale or a separate Stockholm listing. External valuations diverge, with one report putting the unit at EUR 2.5bn-3bn and a separate Bloomberg report citing sources who value the business at around SEK 34bn, with a sale process potentially launching as early as October 2026. Activist investor Cevian Capital has built a stake and is pressing Essity to focus on its core hygiene and health businesses; the strategic review, launched in May 2026, is expected to conclude in the first half of 2027.
Why this mattersA multibillion-value tissue carve-out would reshape Essity into a pure hygiene and health group and could create a new standalone European tissue player.
- Morgan Stanley is advising Essity on a dual-track separation of Consumer Tissue, either a sale to an external buyer or a spin-off listed in Stockholm, according to Bloomberg
- Bloomberg sources say the process could start as early as October 2026 and value the toilet paper business at about SEK 34bn
- One report values the division, home to Lotus, Tempo and Cushelle, at EUR 2.5bn-3bn, below the company's own valuation projections
- The strategic review was announced in May 2026 and is expected to conclude in the first half of 2027
- Activist investor Cevian Capital has increased its stake and is pressing for a focus on core high-margin hygiene and health businesses