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Hygiene and health company Essity has signed an agreement to acquire 75 percent of Swedish medical solutions company ABIGO Medical AB, according to a statement. 

ABIGO Medical AB employs about 170 people and is headquartered in Gothenburg, Sweden.

“The acquisition is a good strategic fit for Essity and strengthens the innovation capacity of our medical solutions business,” says Magnus Groth, president and CEO of Essity. “ABIGO Medical has leading innovations in advanced wound care that reduce the spread of bacteria without increasing resistance to antibiotics.”

Jan G. Smith will retain a 25 percent stake in the company and remain as chairman of the board.

“Essity’s values and strategy are well aligned with ABIGO’s ambitions for the future and with Essity as a partner, we believe there is great potential to continue our shared journey of growth,” says Smith.

The completion of the transaction is subject to customary regulatory approvals and closing is expected to take place during the second quarter of 2020.