SCA Group votes to split
SCA Group, the maker of TENA, will spin off its health and hygiene operations.
Company shareholders voted at its annual general meeting in favor of the Board of Director’s proposal to split the Group into two separate companies, to be completed later this year.
“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, current president and CEO of SCA and future president and CEO of Essity.
The forest products company will continue to operate as SCA and manage all forest products operations and forest land currently owned by the group.
The hygiene and health company will operate under the name Essity, which stems from the words essentials and necessities. Sales for its personal care and tissue products are conducted in approximately 150 countries under brands such as TENA for incontinence and Tork for Away-from-Home tissue. With the recent acquisition of BSN medical, Essity is reinforcing its position as a leading personal care company through brands including Leukoplast, Cutimed, JOBST, Delta Cast, Delta Lite and Activmore.
SCA was founded in 1929 as a forest products company operating in Sweden. The company has expanded over time both in geography and in products, including paper products production, personal care and consumer tissue. Synergies between the operations have decreased and by 2016, the hygiene business accounted for approximately 86 percent of the Group’s net sales.
Nicole was Senior Editor at I Advance Senior Care and Long Term Living Magazine 2015-2017. She has a Journalism degree from Kent State University and is finalizing a master’s degree in Information Architecture and Management. She has extensive studies in the digital user experience and in branding online media. She has worked as an editor and writer for various B2B publications, including Business Finance.