SCA’s divestment of its business in South East Asia, Taiwan and South Korea for
integration with Vinda International Holdings Limited (“Vinda”) has been
approved by the independent shareholders of Vinda. The transaction is expected
to close on February 1, 2016. SCA is the majority shareholder in Vinda, one of
China’s largest hygiene companies.
Vinda is listed on the Hong Kong Stock Exchange and the transaction was subject
to approval by the independent shareholders of Vinda.
As part of the transaction, SCA and Vinda have signed an agreement regarding the
exclusive license to market and sell the SCA brands; TENA (incontinence
products), Tork (Away-from-Home tissue), Tempo (consumer tissue), Libero (baby
diapers), and Libresse (feminine care) in South East Asia, Taiwan and South
Korea. With this agreement, Vinda will hold the rights to these product brands
in these Asian markets. Vinda will acquire the brands Drypers, Dr.P, Sealer,
Prokids, EQ Dry and Control Plus in these markets. SCA will continue to provide
innovation and technical support for the business.
“Asia is an important growth market for SCA with a large population and low
penetration of hygiene products. The approved transaction strengthens the
collaboration between SCA and Vinda and enables us to further leverage on our
strengths to build a leading Asian hygiene business” says Magnus Groth,
President and CEO of SCA.
SCA has been a shareholder in Vinda since 2007, became its majority shareholder
in late 2013, and has consolidated Vinda financials since the first quarter of
2014. In 2014, SCA divested its hygiene business in China (Mainland China, Hong
Kong and Macau) for integration with Vinda.
SCA’s hygiene business in South East Asia, Taiwan and South Korea had net sales
of approximately SEK 2.2 billion in 2014. The business has approximately 1,600
employees and three personal care production sites in Malaysia and Taiwan. The
purchase consideration amounts to HKD 2.8 billion (approx. SEK 3.1 billion) on a
debt-free basis.
As a consequence of this transaction SCA’s Shanghai office will stop to have
operations. This is expected to lead to approximately SEK 90m in restructuring
costs that will be recognized as an item affecting comparability in the fourth
quarter of 2015.
NB: This information is such that SCA must disclose in accordance with the
Securities Markets Act or the Financial Instruments Trading Act. The information
was submitted for publication on January 13, 2016, at 09:30 a.m. CET.
For additional information please contact:
SCA is a leading global hygiene and forest products company. The Group develops
and produces sustainable personal care, tissue and forest products. Sales are
conducted in about 100 countries under many strong brands, including the leading
global brands TENA and Tork, and regional brands, such as Libero, Libresse,
Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest
owner, SCA places considerable emphasis on sustainable forest management. The
Group has about 44,000 employees. Sales in 2014 amounted to approximately SEK
104bn (EUR 11.4bn). SCA was founded in 1929, has its headquarters in Stockholm,
Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit
www.sca.com.
