SCA's (Sweden) divestment of its business in South East Asia, Taiwan, and South Korea for integration with Vinda International Holdings, Hong Kong, has been approved by the independent shareholders of Vinda. The transaction is expected to close on February 1. SCA is the majority shareholder in Vinda, one of China's largest hygiene companies.

 

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. The approved transaction strengthens the collaboration between SCA and Vinda and enables us to further leverage on our strengths to build a leading Asian hygiene business," said Magnus Groth, 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. In 2014, SCA divested its hygiene business in China (Mainland China, Hong Kong, and Macau) for integration with Vinda.

SCA's hygiene business in South East Asia, Taiwan, and South Korea had net sales of approximately SEK 2.2 billion 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 (approximately SEK 3.1 billion) on a debt-free basis.

As a consequence of this transaction, SCA's Shanghai office will cease operating. This is expected to lead to approximately SEK 90 million in restructuring costs that will be recognized as an item affecting comparability in the fourth quarter of 2015. 

SCA is a 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. The Group has about 44,000 employees. Sales in 2014 amounted to approximately SEK 104 billion (EUR 11.4 billion).