Sweden-based producer of medical textiles and hygiene products said it has completely acquired the hygiene business of China’s third-largest tissue company, Vinda International Holdings Limited.
Vinda will transfer its hygiene business in China, Hong Kong and Macau to SCA which concluded the transaction cost of SEK 1,000 million on a debt-free basis.Sweden-based producer of medical textiles and hygiene products said it has completely acquired the hygiene business of China's third-largest tissue #
The transaction is expected to close on October 1, 2014. As of the closing date, Vinda will have the exclusive license to market and sell SCA brands like TENA, Tork, Tempo, Libero and Libresse in China, Hong Kong and Macau.
In these markets, Vinda will hold the rights to these brands and acquire SCA’s Dr P and Sealer brands, while SCA will continue to provide innovation and technical support for the business.
“The transaction will generate mutual benefits for both SCA and Vinda particularly in distribution, sales, innovation and R&D”, said Jan Johansson, President of SCA, in a statement.
He added, “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.”
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, Hong Kong and Macau had net sales of approximately SEK 600 million in 2013.
Founded in 1929, SCA reported sales of EUR 10.7 billion in 2013 and with operations in about 100 countries employs about 44,000 employees. (AR)
Fibre2fashion News Desk - India
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