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

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

Jan Johansson, President and CEO of SCA, reiterated the company’s delight over the investment as it enables SCA establish itself in Brazil, which is also of strategic significance.

SCA has for some time worked on finding the right solution for entering this important emerging market. With this acquisition of Pro Descart, the company now has a presence throughout Latin America, said Johansson.

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.

According to Johansson, 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, SCA has good opportunities to develop its new Brazilian operation, he added.

The Group develops, produces and markets personal care products, tissue, packaging, publication papers and solid-wood products, and has sales in more than 100 countries. In 2010, SCA had annual sales of SEK 107bn and about 45,000 employees.

SCA is a global hygiene and paper company that develops and produces personal care products, tissue, packaging solutions and forest products. SCA has sales in more than 100 countries under many strong brands.

SCA boasts creating value by fulfilling the needs of customers and consumers in a spirit of innovation, through continuous efficiency enhancements and with a clear desire to contribute to sustainable development.

SCA is one of the world's largest companies in personal care products and has a portfolio of incontinence care, baby diapers and feminine care products. It is the world's third-largest supplier of tissue, offering toilet paper, kitchen rolls, facial tissue, handkerchief and napkins to consumers, as well as complete hygiene solutions in the Away-From-Home product segment.

The company currently holds 25 percent global market share, and is European number one with a market share of 41% in incontinence care products.

1st Sept. 2011