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. This 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’s hygiene business in South East Asia, Taiwan and South Korea had net sales of approximately SEK 2.2 billion ($258 million) 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 ($364 million) on a debt-free basis.
The agreement is subject to approval by the independent shareholders of Vinda. Closing of the transaction is expected during the 1Q 2016.
As a consequence of this transaction SCA’s Shanghai office will stop to have operations. This is expected to lead to approximately SEK 90 million ($10.6 million) in restructuring costs that will be recognized as an item affecting comparability in the 4Q 2015.
SCA is a leading global hygiene and forest products company. The Group develops and produces sustainable personal care, tissue and forest products.
