SCA, the leading global hygiene and forest products company, will be split into two listed companies.
One company will continue to be known as SCA, an efficient and well-invested forest company that will include the forest products operations and all forest land currently owned by the SCA Group.
SCA’s hygiene business, including the current business areas of Personal Care and Tissue, as well as the recently acquired company BSN medical, will become a leading global hygiene and health company operating under the name Essity.
A vote in favour of the SCA Board of Directors’ proposal to split the company was made by shareholders at its Annual General Meeting yesterday (5/4/2017). The split will be carried out at a suitable time following completion of the listing process, but no later than in the second half of 2017.
Magnus Groth, currently President and CEO of SCA and future President and CEO of Essity, said: “I am pleased that the shareholders support the Board of Director’s proposal regarding two separate listed companies. This will increase value for shareholders through increased focus, customer value, development opportunities and enable each company to successfully realise its strategies. We look forward to an exciting future for our two strong listed companies.”
SCA was founded in 1929 as a forest products company operating in Sweden. Over the years, the company expanded geographically and into other business activities, such as paper products production, personal care, consumer tissue and Away-from-Home tissue.
Synergies between the operations have diminished over time. In 2016 the hygiene business accounted for 86% of the Group’s net sales and the forest products business for 14%.
Following the split, Essity will be a leading global hygiene and health company that develops, produces, markets and sells personal care and tissue products. Essity stems from the words ‘essentials’ and ‘necessities’ and is well suited to the products the new hygiene and health company offer, products we use every day. Essity’s vision is ‘Dedicated to improving well-being through leading hygiene and health solutions’.
Sales are conducted in about 150 countries under globally leading brands including TENA for incontinence products and Tork for Away-from-Home tissue, as well as under other well-known regional brands – such as Bodyform, Velvet, Cushelle and Plenty. With the acquisition of BSN medical, a leading medical solutions company, Essity further strengthens its capabilities in the health arena with brands such as Leukoplast, Cutimed, JOBST, Delta Cast, Delta Lite and Actimove.
“Hygiene and health are necessities for better lives and our products and solutions play an essential role in improving well-being for everybody, everywhere,” Magnus Groth commented.
The forest products business will keep the name SCA.
Today, SCA owns 2.6 million hectares of forest in Northern Sweden, an area corresponding to about 5% of Sweden, making it the largest private forest holding in Europe.
With this unique resource as the foundation, SCA has developed a well-invested industry, designed to create the highest possible value from the forest, a resource-efficient industry where the entire tree is used to create value.
The products of the forest products business include solid-wood products, pulp, kraftliner, publication papers and renewable energy.