The divestment of businesses is to be integrated with Vinda International Holdings, whose majority share rests with SCA
April 4, 2016
SCA (Sweden) reports that the divestment of its business in South East Asia, Taiwan, and South Korea for integration with Vinda International Holdings closed on April 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, and 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. This 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. Vinda is listed on the Hong Kong Stock Exchange.
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 on a debt-free basis.