Nov 03, 2011. /Lesprom Network/. SCA has decided to form a joint venture partnership for its existing operations in Australasia with the Australian company Pacific Equity Partners (PEP). SCA and PEP Fund IV will each hold 50% of the company. The transaction involves a deconsolidation of the business, which will be financially reported as a joint venture according to the equity-share method, as the company said in a press release received by Lesprom Network. In connection with the refinancing of the business and the divestment of 50% of the equity, SCA will receive SEK 3,200 million ($486,566). Also, there will be a SEK 700 million ($106 million) write-down of the tangible book value, which will impact the result in 4Q 2011. “This deal strengthens our operations in Australia and New Zealand, and it secures our access to local competence and the local capital market. This enables a faster development of the operations”, says Jan Johansson, President and CEO of SCA. The deal will be subject to approval from relevant authorities. Closing is expected to happen within two to three months. SCA’s operations in Australia, New Zealand and Fiji employ about 1,500 people. In 2010, this business had net sales of SEK 4,400 million ($669,028), with some 70% related to tissue and some 30% related to personal care products. In the region, SCA manufactures and markets a number of leading brands including TENA, Tork, Sorbent, Purex, Libra, Treasures, Deeko and Handee Ultra. SCA is a global hygiene and paper company that develops and produces personal care products, tissue, packaging solutions, publication papers and solid-wood products.