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SCA, Maker of the Tork and TENA Brands, to Become Two Listed Vompanies: SCA and Essity

April 10, 2017

SCA began in 1929 in Sweden as a forest products company.  Over the years the company has expanded geographically and developed to include leading hygiene and health brands in the areas of incontinence care, consumer and Away-from-Home tissue and medical solutions, with the recent acquisition of BSN medical.

As of 2016, 86% of the company is in hygiene and health areas, with 14% in forest products. Synergies between the operations have diminished over time.

The forest products company will continue to be known as SCA, an efficient and well-invested company that will include the forest products operations and all forest land currently owned by the SCA Group.

Essity will be a leading global hygiene and health company that develops, produces, markets and sells personal care and tissue products, including the recently acquired BSN medical brands. Essity stems from the words ‘essentials’ and ‘necessities’ and is well suited to the products the new hygiene and health company offer, products we use every day. Essity’s vision is ‘Dedicated to improving well-being through leading hygiene and health solutions’.

Magnus Groth, currently President and CEO of SCA and future President and CEO of Essity, said: “Hygiene and health are necessities for better lives and our products and solutions play an essential role in improving well-being for everybody, everywhere.”

A vote in favor of the SCA Board of Directors’ proposal to split the company was made by shareholders at its Annual General Meeting today (4/5/2017). The split will be carried out at a suitable time following completion of the listing process on the Nasdaq Stockholm, no later than he second half of 2017.

“I am pleased that the shareholders support the Board of Director’s proposal regarding two separate listed companies. This will increase value for shareholders through increased focus, customer value, development opportunities and enable each company to successfully realize its strategies. We look forward to an exciting future for our two strong listed companies,” Magnus Groth commented.

“Our customers who purchase the Tork brand can rest assured that the leading innovations, demonstrated commitment to sustainable practices and employees who deliver exceptional service will remain a hallmark of Essity,” Don Lewis, President, SCA AfH Professional Hygiene.

Sales are conducted in about 150 countries under globally leading brands including TENA

for incontinence products and Tork for Away-from-Home tissue. With the acquisition of BSN medical, a leading medical solutions company, Essity further strengthens its capabilities in the health arena with brands such as Leukoplast, Cutimed, JOBST, Delta Cast, Delta Lite and Actimove.

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 unique resource as the foundation, SCA has developed a well-invested industry, designed to create the highest possible value from the forest, a resource-efficient industry where the entire tree is used to create value.

The products of the forest products business include solid-wood products, pulp, kraftliner, publication papers and renewable energy.


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