Essity is preparing to launch a sales process for its Consumer Tissue business as early as October, with industry players and private equity firms expected to be invited to bid, Bloomberg reported on September 15, citing people familiar with the matter.

The business, which produces toilet paper, tissues and napkins under brands including Lotus, Tempo and Cushelle, could be valued at between €2.5 billion and €3 billion, according to the report. A transaction is expected to be concluded in the first half of 2027.

Essity has not announced a decision to sell the business.

The reported preparations follow the company's strategic review of Consumer Tissue, which was announced in May.

Strategic review

In May, Essity said it had initiated a strategic review of its Consumer Tissue business to evaluate different ownership alternatives. The company said the review could lead to a separation of the business and that the process was expected to be completed during the first half of 2027.

Consumer Tissue is Essity's largest business by sales. It generated almost SEK 44 billion in revenue in 2025, according to Bloomberg, but has the lowest margins among Essity's business units.

A separation could allow Essity to concentrate more strongly on its health and hygiene businesses, Bloomberg reported.

Potential buyers

According to Bloomberg, both strategic industry players and private equity firms are expected to be invited to participate in the potential sale process.

The reported valuation of €2.5 billion to €3 billion would put one of Europe's major consumer tissue businesses on the market. The outcome could therefore attract interest from established tissue producers seeking to expand their geographic or branded consumer businesses, as well as financial investors.

The potential sale also comes after activist investor Cevian Capital acquired a minority stake in Essity. Bloomberg linked the preparation of the sale process to the development, although Essity has not indicated that the stake directly triggered the strategic review.

For Essity, the potential transaction would represent a significant portfolio change, as Consumer Tissue currently accounts for a substantial share of the group's sales.

Essity's strategic review remains ongoing, and any transaction would be subject to the outcome of the process and the necessary corporate approvals.

Source: Bloomberg, September 15, 2026