SCA has announced that it will be spilt into two listed companies, with its hygiene business to be renamed to Essity.
On 5 April 2017, at the annual general meeting of SCA, the company’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, a forest products company that will include the forest products operations and all forest land currently owned by the Group.
SCA’s hygiene business, including the current business areas of personal care (including the recently acquired BSN medical) and tissue will become a global hygiene and health company operating under the name Essity.
The split of the company will be carried following completion of the listing process. The company said it would be 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,” said Magnus Groth, current president and CEO of SCA and future president and CEO of Essity.
“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.”
Following the split, Essity will be a global hygiene and health company that develops, produces and sells personal care and tissue products. Essity stems from the words ‘essentials’ and ‘necessities’.
“Hygiene and health are necessities for better lives and our products and solutions play an essential role in improving well-being for people around the world,” said Groth.