NEWS

(08.03.2012 / sha)

SCA: Offer to acquire Asian hygiene products company

SCA has made a binding offer to acquire the Taiwan-based hygiene products company Everbeauty. The purchase price for the deal amounts to approximately SEK 1.9 billion (USD 290 million) on a debt-free basis.

Everbeauty is a leading Asian personal care products company with sales in China, Taiwan and Southeast Asia. The company produces and markets baby diapers and incontinence care products with strong brands such as Dr P for incontinence care products and Sealer for baby diapers. Everbeauty had sales of SEK 1.6 billion in 2010 and has around 900 employees.

The transaction is expected to give SCA access to an extensive distribution network and a strong sales organization as well as production facilities in China and Taiwan. This proposal is subject to Everbeauty being privatized under Taiwanese law. Completion of the transaction remains subject to certain conditions, including approvals and clearances by relevant authorities in Taiwan. Closing of the deal is expected to take place in the summer of 2012.

“Asia is expected to account for 60 percent of the global growth within hygiene products. The acquisition of Everbeauty would create good growth opportunities in a strategic growth market and with this acquisition, SCA would be the market leader in incontinence care products in Asia, excluding Japan. The acquisition would also strengthen SCA´s market position and geographical reach within baby diapers in Asia”, says Jan Johansson, SCA’s President and CEO.