SCA Establishes a Joint Venture in Australasia with Pacific Equity Partners
Working with local partners and in joint ventures in selected markets is a strategy that works well for SCA. This deal in Australasia enables a more efficient financing as well as it increases the speed of development of the operations.
SCA’s operations in Australia, New Zealand and Fiji employ about 1,500 people. In 2010, this business had net sales of SEK 4,400m, with some 70% related to tissue and some 30% related to personal care products. In the region, SCA manufactures and markets a number of leading brands including TENA, Tork, Sorbent, Purex, Libra, Treasures, Deeko and Handee Ultra.
The transaction involves a deconsolidation of the business, which will be financially reported as a joint venture according to the equity-share method.
In connection with the refinancing of the business and the divestment of 50% of the equity, SCA will receive SEK 3,200m. Also, there will be a SEK 700m write-down of the tangible book value, which will impact the result in Q4 2011.
“This deal strengthens our operations in Australia and New Zealand, and it secures our access to local competence and the local capital market. This enables a faster development of the operations”, says Jan Johansson, President and CEO of SCA.
The deal will be subject to approval from relevant authorities. Closing is expected to happen within two to three months.
Stockholm, Sweden, November 4, 2011
SCA is a global hygiene and paper company that develops and produces personal care products, tissue, packaging solutions, publication papers and solid-wood products. Sales are conducted in some 100 countries. SCA has many well-known brands, including the global brands TENA and Tork. Sales in 2010 amounted to SEK 107 billion (EUR 11.3 billion). SCA has approximately 45,000 employees. More information at www.sca.com
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