Sydney leakproof clothing company Modibodi acquired for $140m

An Australian clothing company that caters for people struggling from heavy period bleeds or incontinence has just been snapped up for an eye-watering figure.

An Australian company that specialises in leakproof items of clothing has been snapped up for $140 million.

At the end of last week, Swedish hygiene and health company Essity announced it had struck a deal with Modibodi “on a cash and debt free basis” to acquire it.

Modibodi was founded by Sydney mum-of-four Kristy Chong in 2013 and it now has 45 employees operating out of its Sydney headquarters, supplying customers in Australia as well as New Zealand and the UK.

Ms Chong initially gambled her house on the idea, using $50,000 to get it off the ground which came from her savings and a small amount of seed funding taken from her mortgage.

Her company caters for people struggling from heavy period bleeds or incontinence by designing a range of sustainable, hi-tech underwear that replaced the need for tampons, pads and adult nappies.

Modibodi also has swimwear, activewear and maternity wear on offer for its customers.

The company soared to success against the backdrop of the Covid-19 pandemic, with news.com.au reporting last year the business hit the four million mark for pairs of underwear sold globally and enjoyed a 929 per cent growth in revenue in two years.

In 2021, the company reported net sales of $56.7 million.

Essity said Modibodi had caught their attention becauseleakproof apparel is “the fastest growing product segment in intimate hygiene”, adding the industry was expected to expand by around 20 per cent in the next five years.

Kristy Chong’s company has just been bought out for $140 million.

Ms Chong said of the acquisition: “I am proud of all we have created at Modibodi over the past nine years and pleased that Modibodi is joining Essity.

“As a global leader in hygiene and health, Essity can provide the expertise and capital to take the brand forward during its next phase of growth, and achieve even greater impact.”

Magnus Groth, Essity’s CEO, added: “The acquisition of Modibodi strengthens Essity’s position in leakproof apparel and enables faster growth within better-for-you, better-for-the-planet solutions.

“Modibodi has the qualities we are looking for with leading market positions, strong brand and sustainability credentials as well as excellent digital marketing and e-commerce capabilities.”

The transaction is expected to be finalised in the second half of this year.

Kristy Chong founded the company nine years ago.

It has sold millions of products.

Speaking to news.com.au last year, Ms Chong said she got the idea for Modibodi from personal experience.

“I was a full-time mum of a two-year-old and five-month-old at the time, living in Seattle surrounded by tech start-ups,” she explains.

“My periods had not long returned and I’d been experiencing occasional light bladder leaks. “The available solutions were ugly, inconvenient, uncomfortable and a hazard to our environment – disposable hygiene. I just felt we deserved something better.

“I also couldn’t understand why with all the advancements in technology, underwear and disposable hygiene had not evolved. I knew instantly that I was going to have to create a whole new product category for women.”

– With Kara Byers