SCA, Sweden, the majority shareholder in China’s third-largest tissue company, Vinda International Holdings, reports that its agreement with Vinda to transfer its hygiene business in China (Mainland China, Hong Kong, and Macau) has been approved by the independent shareholders of Vinda. The agreement which strengthens the cooperation between SCA and Vinda (announced this past July 18), was subject to approval by the independent shareholders of Vinda.

 

The transaction is expected to close on October 1. As of the closing date, Vinda will have 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. In the Mainland China, Hong Kong,, and Macau markets, Vinda will hold the rights to these brands and acquire SCA’s Dr P and Sealer brands, while SCA will continue to provide innovation and technical support for the business.

 

The approved 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, said Jan Johansson, president and CEO of SCA.

 

SCA, which has been a shareholder in Vinda since 2007 and became its majority shareholder in late 2013, has consolidated Vinda financials since the first quarter of 2014.

SCA’s hygiene business in China had net sales of approximately SEK 600 million in 2013. The purchase consideration amounts to HKD 1,144 million (approximately SEK 1,000 million) on a debt-free basis.