SCA acquires hygiene products company in Brazil

  • Regulatory press release

SCA is acquiring the Brazilian hygiene products company Pro Descart. Consideration for the deal amounts to SEK 450m on a debt-free basis. The company has annual sales of SEK 360m.

Brazil is the most highly populated country in South America, with 190 million inhabitants and a favourable economic growth. The market for hygiene products has a good growth potential, this applies especially for incontinence care products, having shown double digit growth.

“I am very happy that we are now establishing ourselves in Brazil, which is also of strategic significance,” comments Jan Johansson, President and CEO of SCA. “We have for some time worked on finding the right solution for entering this important emerging market. With this acquisition of Pro Descart, we now have a presence throughout Latin America.”

Pro Descart is a family-owned company focused on incontinence care products, but also sells baby diapers and wet wipes. The company, with approximately 400 employees, has manufacturing in the Sao Paulo area.

“Pro Descart has a number two position in Brazil’s incontinence care market. In view of the fact that SCA is the world leader within incontinence protection with its TENA brand, we have good opportunities to develop our new Brazilian operation,” adds Jan Johansson.

Stockholm 1 September, 2011

For additional information, please contact
Pär Altan, Vice President Media Relations, +46 8 788 52 37
Johan Karlsson, Vice President Investor Relations, +46 8 788 51 30

This information is such that SCA must disclose in accordance with the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on September 1, at 8.30 CET.