Who Owns Essity Company?

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Who owns Essity?

Essity's ownership structure is key to its global strategy and accountability. It emerged as an independent hygiene and health company after spinning off from SCA and listing on Nasdaq Stockholm on June 15, 2017.

Who Owns Essity Company?

Essity, a company focused on essential hygiene and health solutions, operates in about 150 countries and reaches over a billion people daily. Its product range includes well-known brands, and in 2024, it reported net sales of SEK 146 billion.

Understanding Essity's ownership involves looking at its spin-off from SCA, share distribution, major investors, and its share structure. This analysis will cover its key stakeholders and board influence.

Who Founded Essity?

Essity's ownership journey began not with individual founders, but through a significant corporate restructuring. On June 15, 2017, Essity AB was established as an independent, publicly traded entity, a strategic spin-off from its former parent, Svenska Cellulosa Aktiebolaget (SCA).

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Corporate Spin-Off

Essity was created through a spin-off from SCA on June 15, 2017. This move allowed both companies to concentrate on their core businesses.

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Initial Ownership Distribution

The initial Essity ownership was transferred directly to SCA's existing shareholders. This included a wide range of institutional and individual investors.

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SCA's Foundation

While Essity's independent ownership began in 2017, its former parent, SCA, was founded by Ivar Kreuger in 1929. SCA was initially established as a holding company for forest industry assets.

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Focus on Hygiene and Health

The spin-off enabled Essity to sharpen its focus on the hygiene and health sectors. This strategic decision aimed to drive growth and innovation within these specific markets.

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Publicly Listed Entity

Essity commenced operations as a separate, publicly listed company. This structure facilitated direct investment and trading of its shares on the stock market.

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Shareholder Transition

The transition of ownership was designed to be seamless for SCA's shareholders. They automatically became the initial owners of Essity, inheriting a stake in the newly formed company.

The initial ownership structure of Essity was a direct reflection of its origins as a spin-off from SCA. When Essity AB was established as an independent entity on June 15, 2017, its shares were distributed to the existing shareholders of its parent company, SCA. This meant that the diverse group of institutional investors and individual shareholders who previously held stakes in SCA automatically became the initial owners of Essity. This approach ensured a broad and dispersed shareholder base from the outset, facilitating Essity's transition into a standalone, publicly traded company focused on hygiene and health solutions. While SCA itself has a history dating back to its founding by Ivar Kreuger in 1929, Essity's 'founding ownership' is intrinsically linked to this 2017 distribution event.

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Essity's Ownership Landscape

Essity's ownership is characterized by a broad base of shareholders, a result of its spin-off from SCA. Understanding who owns Essity involves looking at the distribution of its stock among various investors.

  • Essity is a publicly traded company, meaning its stock is owned by a multitude of investors.
  • The initial Essity shareholders were the shareholders of its former parent company, SCA.
  • Major institutional investors often hold significant stakes in publicly traded companies like Essity.
  • Individual investors also contribute to the Essity stock ownership, albeit typically in smaller individual amounts.
  • The company's Marketing Strategy of Essity aims to strengthen its position among these diverse stakeholders.

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How Has Essity’s Ownership Changed Over Time?

Essity's journey as a publicly traded entity began on June 15, 2017, with an initial market capitalization of approximately SEK 174 billion. This event marked a significant shift in its ownership landscape, transitioning from its previous structure to a publicly accessible one. The company's shareholder base has continued to grow and diversify since its listing.

Shareholder Percentage of Votes (as of June 30, 2025) Share Class
AB Industrivärden 29.5% Class A and Class B
Norges Bank Investment Management 6.8%
AMF Försäkring & Fonder 6.2%
BlackRock 2.2%
Swedbank Robur Fonder 2.3%

The ownership structure of Essity demonstrates a strong influence from institutional investors, particularly those based in Sweden. As of July 14, 2024, these institutions collectively held approximately 64% of the company's shares. This significant institutional backing, coupled with foreign ownership accounting for 51% of shares as of December 30, 2024, highlights a broad and diversified investor base. The dual-class share structure plays a crucial role in concentrating voting power, with AB Industrivärden being the largest shareholder in terms of voting rights.

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Understanding Essity's Shareholder Landscape

Essity's ownership is characterized by a substantial presence of institutional investors, influencing its strategic direction. The company's shareholder base is global, with a notable portion held by foreign entities.

  • Essity has approximately 104,578 shareholders as of March 31, 2025.
  • Institutional investors held around 64% of shares as of July 14, 2024.
  • Foreign ownership represented 51% of shares as of December 30, 2024.
  • AB Industrivärden is the largest shareholder by voting power.
  • The company's dual-class share structure impacts voting power distribution.

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Who Sits on Essity’s Board?

Essity's governance structure is centered around its General Meeting, the ultimate decision-making forum for all shareholders. The company employs a dual-class share system, where Class A shares hold ten votes each, and Class B shares hold one vote each. This arrangement gives significant voting leverage to holders of Class A shares, such as AB Industrivärden, even if their capital stake is smaller.

Board Member Role Affiliation/Notes
Jan Gurander Chairman Re-elected at 2025 AGM
Magnus Groth Board Member President and CEO of Essity
Maria Carell Board Member Re-elected at 2025 AGM
Annemarie Gardshol Board Member Re-elected at 2025 AGM; also board member of SCA
Torbjörn Lööf Board Member Re-elected at 2025 AGM
Bert Nordberg Board Member Re-elected at 2025 AGM
Barbara Milian Thoralfsson Board Member Re-elected at 2025 AGM; also board member of SCA
Alexander Lacik Board Member Newly elected at 2025 AGM
Katarina Martinson Board Member Newly elected at 2025 AGM

The composition of the Board of Directors for 2025 reflects a blend of re-elected and new members, with Jan Gurander continuing as Chairman. Many directors are considered independent, meaning they have no significant ties to the company's management or major shareholders. The presence of representatives from significant shareholders, particularly those holding Class A shares, ensures that key strategic interests are integrated into the company's oversight and direction. Understanding the Essity company structure is key to grasping how these voting powers influence its trajectory.

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Essity's Shareholder Influence

Essity's voting power is concentrated due to its dual-class share structure. Holders of Class A shares wield significantly more influence per share than Class B shareholders.

  • Class A shares: 10 votes per share
  • Class B shares: 1 vote per share
  • Major shareholders, like AB Industrivärden, benefit from this structure.
  • This impacts Essity stock ownership and overall Essity ownership.

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What Recent Changes Have Shaped Essity’s Ownership Landscape?

Over the past few years, Essity has been actively shaping its ownership structure and capital deployment. Recent strategic moves include significant share buybacks and a major divestment, alongside leadership transitions, all influencing the company's overall profile and future direction.

Development Date Details
Share Buyback Program Completion March 13, 2025 Repurchased 10,070,500 Class B shares for SEK 3 billion.
New Share Buyback Program Launch April 24, 2025 New SEK 3 billion program expected to run until the 2026 Annual General Meeting.
Cancellation of Repurchased Shares March 27, 2025 Cancelled 9,288,000 Class B shares following the 2025 Annual General Meeting resolution.
Divestment of Vinda Stake March 2024 Sold 52% stake in Vinda for approximately SEK 19 billion, reducing exposure to consumer tissue.
CEO Transition June 1, 2025 Ulrika Kolsrud assumed the role of President and CEO.

Essity's ownership landscape is increasingly characterized by institutional investors, who held 64% of the company's shares as of July 2024. This trend underscores the company's appeal to larger investment entities. The company's strategic focus remains on expanding its presence in higher-value market segments, such as medical solutions and leakproof apparel, through targeted acquisitions. This strategic direction is also informed by an understanding of the Target Market of Essity, aiming to align its portfolio with evolving consumer needs and market opportunities.

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Essity has actively engaged in share buyback programs, demonstrating a commitment to returning value to shareholders. The recent completion of a SEK 3 billion buyback and the launch of a new one signal a consistent capital allocation strategy.

Icon Strategic Portfolio Management

The divestment of the Vinda stake in March 2024 for SEK 19 billion reflects a strategic pivot. This move aims to enhance profit margins by reducing exposure to the consumer tissue segment.

Icon Leadership and Governance

The appointment of Ulrika Kolsrud as the new President and CEO on June 1, 2025, marks a significant leadership change. This transition is a key aspect of Essity's ongoing corporate evolution.

Icon Ownership Trends

Institutional ownership has reached 64% as of July 2024, indicating a strong presence of major investment funds. This trend influences the company's strategic decisions and financial reporting.

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