TORONTO — Canadian apparel brand Knix Wear Inc., maker of leakproof underwear for periods and incontinence, has a new majority shareholder.
The privately held company says it has agreed to sell 80 per cent of its ownership to Swedish hygiene products maker Essity for US$320 million.
Joanna Griffiths, founder and CEO of Knix, calls it “a dream come true” to partner with Essity, saying the companies share the same goals of improving customers lives.
She will hold the remaining 20 per cent stake of Knix and stay on as president.
The transaction is expected to be finalized in the second half of 2022.
Stockholm-based Essity says the deal makes it the global market leader of leakproof apparel, a product segment it says is expected to grow by more than 20 per cent over the next five years.
“I am delighted to welcome Knix to Essity,” Magnus Groth, president and CEO of Essity, said in a statement Friday.
“It’s a successful company with an impressive track record.”
Griffiths founded Knix in 2013 with a focus on leakproof apparel.
The Toronto-based company has since expanded into bras, shapewear, activewear, sleepwear, swimwear and teen styles.
It sells mainly direct-to-consumers online, offering virtual fittings and a simplified online return process. It also has six retail stores in Canada and the U.S.
The total enterprise value of Knix, which has approximately 200 employees, amounts to US$400 million, Essity said.
It said Knix reported net sales of $133.6 million last year, with a sales growth of 97 per cent.
The deal with Knix comes a day after Essity announced plans to buy Australian leakproof apparel maker Modibodi.
Essity is already behind multiple brands in the feminine care and intimate apparel market including Libresse, Bodyform, Saba, Tom Organic, and Tena.
This report by The Canadian Press was first published July 8, 2022.
