March 2012
Over The Wire Tissue Edition
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SCA to Acquire Asian Hygiene Products Company Everbeauty

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SCA, Stockholm, Sweden, 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 ($290 million) on a debt-free basis. If the deal is completed, SCA’s positions in Asia, one of the Group’s prioritized growth markets, will be substantially strengthened.

Everbeauty is an Asian personal care products company with sales in China, Taiwan, and Southeast Asia. The company produces and markets baby diapers and incontinence care products. Within incontinence care products, the company holds a No. 2 position in China and a No. 1 position in Taiwan. Within baby diapers, the company holds a No. 5 position in China and Taiwan. Everbeauty had sales of SEK 1.6 billion in 2010. Some 60% of sales are related to baby diapers and 40% comes from incontinence care products. The company has about 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.

The offer 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 this summer.

Today, SCA is present in Asia with personal care and tissue products and in some markets holds leading positions. SCA also holds an 18% ownership in Vinda International, a major tissue producer in China.

 

 

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Buckman

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