Why is personal care brand Asaleo (ASX: AHY) rallying today?
Stock
Asaleo Care (ASX: AHY) $0.90 as at 06/12/2018
Event
The personal care business Asaleo Care (ASX: AHY) has rallied over 40% today on news that they will be selling their Australian tissue business.
The business, which includes Sorbent, and Handee paper towels will be sold to Solaris Paper for a handy (pardon the pun) $180m, ~10% over book value.
According to the company, the sale will help improve EBITDA margins which have been eroding over the years while input costs rose.
The company announced the sale at the end of a strategic review, in which they announced they will focus on “higher margin and less capital intensive businesses in Personal Care.”
Asaleo Care (ASX: AHY) Chart
Market Matters Take/Outlook
