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SCA offers to acquire Asian hygiene products company

SCA has made a binding offer to acquire the Taiwan-based hygiene products
company Everbeauty. The purchase price for the deal amounts to approximately SEK
1.9bn (USD 290m) on a debt-free basis. If the deal is realized, SCA’s positions
in Asia, one of the Group’s prioritized growth markets, will be substantially
strengthened.
 
Everbeauty is a leading Asian personal care products company with sales in
China, Taiwan and Southeast Asia. The company produces and markets baby diapers
and incontinence care products with strong brands such as Dr P for incontinence
care products and Sealer for baby diapers.
 
Within incontinence care products, the company holds a number two position in
China and a number one position in Taiwan. Within baby diapers, the company
holds a number five position in China and Taiwan.
 
Everbeauty had sales of SEK 1.6bn in 2010. 60 percent of sales are related to
baby diapers and 40 percent comes from incontinence care products. The company
has around 900 employees.
 
The transaction is expected to give SCA access to an extensive distribution
network and a strong sales organization as well as production facilities in
China and Taiwan.
 
This proposal is subject to Everbeauty being privatized under Taiwanese law.
Completion of the transaction remains subject to certain conditions, including
approvals and clearances by relevant authorities in Taiwan. Closing of the deal
is expected to take place in the summer of 2012.
 
“Asia is expected to account for 60 percent of the global growth within hygiene
products. The acquisition of Everbeauty would create good growth opportunities
in a strategic growth market and with this acquisition, SCA would be the market
leader in incontinence care products in Asia, excluding Japan. The acquisition
would also strengthen SCA´s market position and geographical reach within baby
diapers in Asia”, says Jan Johansson, SCA’s President and CEO.
 
Today, SCA is present in Asia with personal care and tissue products and on some
markets holds leading positions. SCA also holds an 18 percent ownership in Vinda
International, one of the leading tissue producers in China.
 
Stockholm, Sweden, 25 February 2012
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