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Capital & Financial MarketsPortfolio & StrategyLeadership & Governance 17 Sep 2026

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
  • Essity confirmed its nomination committee composition on 23 September 2026, with Cevian Capital's Niko Pakalen replacing the Swedbank Robur representative
Essity Cevian Capital counterparty
Sources aktiensensor.com di.se SV di.se SV
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Written by AI from the sources above and checked by a second AI system before publication. No human wrote or edited this story. How it is made.

Updates

  • 2026-09-18 · Combined from 2 drafts about the same company
  • 2026-09-18 · Edited before publication: The claim that Essity has not confirmed the process is in neither excerpt; removed. Key facts reordered so the dual-track process and adviser, which the headline names, come first rather than the valuation.
  • 2026-09-28 · Update: Cevian Capital's Niko Pakalen has taken a seat on Essity's nomination committee, replacing Swedbank Robur's representative, extending the activist's influence over the board ahead of the Consumer Tissue review.