Pro Descart to be Acquired by SCA

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SCA, Sweden, is acquiring the Brazilian hygiene products company Pro Descart for SEK 450 million on a debt-free basis. Pro Descart has annual sales of SEK 360 million. SCA notes that Brazil is the most highly populated country in South America, with 190 million inhabitants and a favorable economic growth, adding that the market for hygiene products has a good growth potential, especially for incontinence care products, having shown double digit growth.

Pro Descart is a family-owned company focused on incontinence care products, but also sells baby diapers and wet wipes. The company, with approximately 400 employees, has manufacturing facilities in the Sao Paulo area.

"I am very happy that we are now establishing ourselves in Brazil, which is also of strategic significance," said Jan Johansson, president and CEO of SCA. "We have for some time worked on finding the right solution for entering this important, emerging market. With this acquisition of Pro Descart, we now have a presence throughout Latin America."

Johansson added that "Pro Descart has a number two position in Brazil’s incontinence care market. In view of the fact that SCA is the world leader within incontinence protection with its TENA brand, we have good opportunities to develop our new Brazilian operation."