SCA’s shareholders voted in favor of the Board of Director’s proposal to split the Group into two listed companies. One of these will continue to operate as SCA, an efficient and well-invested 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 and Tissuewill 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.
“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 realize its strategies. We look forward to an exciting future for our two strong listed companies,” says Magnus Groth, currently President and CEO of SCA and future President and CEO of the new hygiene and health company Essity.
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.
Following the split, Essity will be a leading global hygiene and health company that develops, produces and sells personal care and tissue products.