SCA to Float Tissue/Personal Hygiene Joint Venture in Australia

SCA, Stockholm, Sweden, and its Australian partner, Pacific Equity Partners (PEP), have decided to float their joint venture in Australia, New Zealand, and Fiji on the Australian Securities Exchange (ASX). A draft of the prospectus for the initial public offering (IPO) was submitted this week to the Australian Securities and Investment Commission (ASIC). The listing of the joint venture Asaleo Care (formerly SCA Hygiene Australasia) on the ASX is scheduled to take place late this month or early July. 

SCA intends to retain a significant shareholding in Asaleo Care. The Group currently owns 50% of the company. The stock market floatation will dilute SCA’s holding in the company. SCA’s ownership is expected to be approximately 33% following the IPO. 

Asaleo Care manufactures and markets at-home (AH) consumer tissue and away-from-home (AfH) tissue, diapers, feminine care products, and incontinence products. Leading brands include TENA, Tork, Sorbent, Libra, and Treasures. In 2013, the company reported net sales of AUD 625 million (approximately SEK 3.9 billion) and an operating profit of AUD 97 million (approximately SEK 610 million). The company has about 1,050 full-time employees. 

SCA is a global hygiene and forest products company. It develops and produces sustainable personal care, tissue, and forest products. Sales are conducted in about 100 countries under many brands, including global brands TENA and Tork, and regional brands, such as Libero, Libresse, Lotus, Nosotras, Saba, Tempo, and Vinda. SCA has about 44,000 employees. Its sales in 2013 amounted to approximately SEK 93 billion (EUR 10.7 billion).