SCA to split into two listed companies

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SCA’s shareholders voted in favour of the board of director's proposal to split the group into two listed companies. One of these will continue to operate as SCA, which will include the forest products operations and all forest land currently owned by the group. SCA’s hygiene business will become a leading global hygiene and health company operating under the name Essity.

The split of the company will be carried out at a suitable time following completion of the listing process, but no later than in the second half of 2017. In addition to their existing shareholding, SCA's shareholders will also receive shares in the newly listed hygiene and health company Essity in connection with the listing.

‘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 realise its strategies. We look forward to an exciting future for our two strong listed companies,’ said Magnus Groth, currently president and CEO of SCA and future president and CEO of the new hygiene and health company Essity.

SCA was founded in 1929 as a forest products company operating in Sweden. Over the years, the company expanded geographically and into other business activities, such as paper products production, personal care, consumer tissue and away from home tissue. In 2016, the hygiene business accounted for approximately 86% of the group's net sales and the forest products business for approximately 14%. Synergies between the operations have diminished over time.

Today, SCA owns 2.6 million hectares of forest in Northern Sweden, an area corresponding to about 5% of Sweden, making it the largest private forest holding in Europe. With this resource as the foundation, SCA has developed a well invested, resource efficient industrial operation, designed to generate the highest possible value from the forest using all parts of the tree. The forest products business produces solid wood products, pulp, kraftliner, publication papers and renewable energy.

Following the split, Essity will be a leading global hygiene and health company that develops, produces and sells personal care and tissue products. Essity stems from the words 'essentials' and 'necessities', a fitting name for the products the new hygiene and health company offers.