SCA, which owns brands like Demak’Up, Libresse, Edet and Okay, will split into 2 different companies. SCA will focus on forestry and related activities, while the hygiene and health divisions will become independent.
More shareholder value
The new company will be called Essity and the current SCA shareholders will get shares in both companies. As soon as they are both listed, sometime before the end of the year, the split will be finalized.
“I am pleased that the shareholders support the Board’s proposal regarding two separate listed companies. This will increase value for shareholders in the long-term through increased focus, customer value, development opportunities and enables each company to successfully realize its strategies. We look forward to an exciting future for our two strong listed companies,” says Magnus Groth, currently President and CEO of SCA and future President and CEO of the new hygiene and health company Essity.
Back to its roots
Founded in 1929, SCA focused on forest products, but developed into another direction later on. Currently, only 14 % of turnover comes from forest products, despite the fact it is still Europe’s largest privately-owned forest company in Europe thanks to its 2.6 million hectares of land.
Essity, derived from “essentials” and “necessities”, will become one of the world’s largest hygiene and health companies in the world once it becomes independent. The Essity brands, including worldwide brands like TENA and a lot of smaller, local brands, are currently sold in about 150 countries.
