SCA and Vinda to Integrate Hygiene Business in China
July 21, 2014 - SCA, a majority shareholder in China's third-largest tissue company, Vinda International Holdings Limited ("Vinda"), plans to transfer its hygiene business in China (Mainland China, Hong Kong and Macau) to Vinda.
Under the terms of the deal, Vinda will hold the rights to market and sell SCA hygiene brands in China.
As part of the deal, SCA and Vinda have signed an agreement regarding the exclusive license to market and sell the following SCA brands in China (Mainland China,Hong Kong and Macau):
- TENA, (incontinence products)
- Tork (Away from Home tissue)
- Tempo (consumer tissue)
- Libero (baby diapers)
- Libresse (feminine care)
Under the terms of the deal, Vinda will hold the rights to these product brands in these Chinese markets. Vinda will acquire SCA's Dr P and Sealer brands in China.
"With its immense number of inhabitants, ageing population and low penetration of hygiene products, China is an attractive and important market with significant potential for future growth," said Jan Johansson, President and CEO of SCA.
"This new cooperation and transaction will generate mutual benefits for both SCA and Vinda particularly in distribution, sales, innovation and R&D. Vinda will get access to a broader product portfolio and SCA's brands will have the potential to reach a broader base of consumers and customers via the extensive and robust distribution network of Vinda in China," Johansson explained.
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.
SCA's hygiene business in China (Mainland China, Hong Kong and Macau) had net sales of approximately SEK 600 million in 2013.
The purchase price amounts to HKD 1,144 million (approx. SEK 1,000 million) on a debt-free basis.
The agreement is subject to approval by the independent shareholders of Vinda. Vinda is listed on the Hong Kong Stock Exchange.