SCA plans split into two ventures
PRUDHOE’S primary employer will soon trade under a new name as SCA splits into two listed companies.
One company will continue as SCA, involved with forest products operations and forest land owned by the SCA Group.
SCA’s hygiene business will operate under the brand of Essity, a combination of ‘essentials’ and ‘necessities’, which will develop, produce, market and sell personal care and tissue products.
The split was proposed by SCA’s board of directors and shareholders have voted in favour of the proposal.
SCA says the split will be carried out at a suitable time following completion of the listing process, but it will be no later than the second half of 2017.
Magnus Groth, currently president and chief executive of SCA and the future president and chief executive of Essity, said: “This will increase value for shareholders through increased focus, customer value and development opportunities and enable each company to successfully realise its strategies. We look forward to an exciting future for our two strong listed companies.”
Essity will sell globally under household brands such as Tena, Bodyform, Velvet, Cushelle and Plenty.
With the acquisition of BSN medical, a leading medical solutions company, Essity will further expand into the health arena, with brands such as Leukoplast, Cutimed, JOBST, Delta Cast, Delta Lite and Actimove.