SCA Proposes to Buy Taiwan-based Everbeauty for SEK 1.9 Billion
Feb. 25, 2012 - SCA said that it 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. Within incontinence care products, the company holds a number two position in China and a number one position in Taiwan. Within baby diapers, the company holds a number five 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.
SCA's proposal is subject to Everbeauty being privatized under Taiwanese law and remains subject to certain conditions, including approvals and clearances by relevant authorities in Taiwan.
SCA expects to close the deal in the summer of 2012.
“Asia is expected to account for 60 percent of the global growth within hygiene products," said Jan Johansson, SCA's President and CEO. "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.”
Today, SCA is present in Asia with personal care and tissue products and on some markets holds leading positions. SCA also holds an 18 percent ownership in Vinda International, one of the leading tissue producers in China.