Skip to Content

SCA to buy BSN for 2.74 billion euros

SCA to buy BSN for 2.74 billion euros

STOCKHOLM - SCA has entered into an agreement to acquire BSN Medical from the private equity group EQT Partners AB for 2.74 billion euros ($2.9 billion), it announced Dec. 19.

The deal with BSN, a maker of wound care and compression therapy products and orthopedics, allows SCA to bulk up its hygiene business as part of a planned separation from its forest products business.

“The BSN acquisition is an excellent strategic fit for SCA supporting our vision to improve well-being through leading hygiene and health solutions, two closely interlinked areas,” said Magnus Goth, president and CEO of SCA, in a press release. “BSN has leading market positions in several attractive medical product categories and provides a new growth platform with future industry consolidation opportunities. Our incontinence business, with the global leading TENA brand, shares similar positive market characteristics, customer and sales channels, which provide opportunities for accelerated growth through cross-selling.”

BSN is known for long-established brand leaders in key markets, like JOBST in the compression therapy market.

BSN reported net sales for the first nine months of 2016 of 627 million euros, adjusted EBITDA of 151 million euros, adjusted operating profit of 103 million euros, and an adjusted operating margin of 16.4%.

BSN's global addressable market size is estimated to be 11.6 billion euros, with an estimated market growth (CAGR 2015-20) of about 4%.

As a result of the deal, SCA expects to increase earnings in year one, and realize annual synergies of at least 30 million euros within three years after closing.

SCA expects to close on the deal during the second quarter of 2017.

Comments

To comment on this post, please log in to your account or set up an account now.