SCA forms separate hygiene company

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Thursday, April 6, 2017

PHILADELPHIA – SCA will split its global hygiene and health products into a new company, Essity.

The forest products division will remain under the SCA name.

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

Essity will develop, produce, market and sell personal care and tissue products, including the BSN Medical brands, which SCA acquired in December for $2.9 billion. Essity stems from the words “essentials” and “necessities.”

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

Groth will transition to president and CEO of Essity.

SCA had sales in about 150 countries under global brands like TENA for incontinence products and Tork for Away-from-Home tissue products. The acquisition of BSN Medical added brands like Leukoplast, Cutimed, JOBST, Delta Cast, Delta Lite and Actimove.

The split will be completed no later than the second half of 2017.