SCA closes acquisition of BSN medical,
hygiene business spin-off to be listed as Essity
The split of SCA into two listed companies is expected to be carried by the end of this year. BSN medical to become part of the new personal care and tissue business spin-off Essity.
Svenska Cellulosa Aktiebolaget (SCA) has completed the acquisition of BSN medical, a Hamburg-based international medical solutions company, from the Swedish privare equity company EQT. SCA and EQT put the transaction value at €2.74bn, of which €1.40bn is accounted for by the value of BSN medical shares and €1.34bn in net debt. BSN medical had sales of €850m (SEK8.04bn) and adjusted EBITDA, excluding items affecting comparability, of €210m (SEK1.99bn) in 2016.
BSN medical develops, manufactures, markets and sells products within wound care, compression therapy and orthopedics, selling under the brands of Leukoplast, Cutimed, JOBST, Delta and Actimove. The company was established in 2001 as a 50:50 joint venture between the German personal care company Beiersdorf AG and Smith & Nephew, a British medical equipment and products company. In 2006, Montagu Private Equity had led the buy out of BSN medical and sold the company to EQT in a €1.8bn transaction in 2012.
SCA Hygiene becomes Essity
BSN medical, will be included in SCA's Personal Care business area and, together with the Incontinence Care business unit, will form the business unit Health and Medical Solutions led by Margareta Lehmann, currently President of SCA Incontinence Care, the company announced. As part of SCA' Personal Care BSN medical will be included in the new hygiene business company SCA is currently preparing to spin off and list on the stock exchange.
At the annual general meeting on 5 April, the company's shareholders have voted in favour of the proposed split of the group into two listed companies. According to the company, one of the two entities will encompass the current forest products business and continue to operate as SCA. The hygiene business, including the current business areas of Personal Care and Tissue will become "a leading global hygiene and health company operating under the name of Essity", the group said. SCA expects the transaction to be completed by the end of this year.
In 2016, SCA's hygiene business generated sales of SEK101.3bn (€10,71bn), accounting for 86% of the group's annual net sales. SCA's forest products business includes forest land management operations as welll as production of wood products, pulp, publication papers, kraftliner, pellets and renewable energy under the form of district heating and electricity.
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