SCA and Vinda to integrate hygiene business in China
STOCKHOLM, Sweden -- July 17, 2014
SCA, a leading global hygiene and forest products company, and the majority
shareholder in China’s third-largest tissue company, Vinda International
Holdings Limited (“Vinda”) is strengthening the cooperation with Vinda. SCA to
transfer its hygiene business in China (Mainland China, Hong Kong and Macau)
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 China (Mainland China,Hong Kong and
Macau). With this agreement, Vinda will hold the rights to these product
brands in these Chinese markets. Vinda will acquire SCA’s Dr P and Sealer
brands in China.
“With its immense number of inhabitants, ageing population and low penetration
of hygiene products, China is an attractive and important market with
significant potential for future growth. This new cooperation and transaction
will generate mutual benefits for both SCA and Vinda particularly in
distribution, sales, innovation and R&D. Vinda will get access to a broader
product portfolio and SCA’s brands will have the potential to reach a broader
base of consumers and customers via the extensive and robust distribution
network of Vinda in China,” says Jan Johansson, 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.
SCA’s hygiene business in China (Mainland China, Hong Kong and Macau) had net
sales of approximately SEK 600m in 2013. The purchase consideration amounts to
HKD 1,144m (approx. SEK 1,000m) on a debt-free basis.
The agreement is subject to approval by the independent shareholders of Vinda.
Vinda is listed on the Hong Kong Stock Exchange.
NB: This information is such that SCA must disclose in accordance with the
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication on 18 July 2014, at approximately
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 2013 amounted to
approximately SEK 93bn (EUR 10.7bn). 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.
This information was brought to you by Cision http://news.cision.com.
Johan Karlsson, 46 8 788 51 30
VP Investor Relations
Boo Ehlin, 46 8 788 51 36
VP Media Relations
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