SCA Breaks New Ground with Hygiene Acquisition in Argentina

Regulatory News:

SCA (NASDAQ:SVCBY)(STO:SCAA)(STO:SCAB) has – through its Colombian joint-venture company – acquired Algodonera Aconcagua, one of the largest players in feminine care in Argentina.

The decision to acquire Algodonera Aconcagua was taken by SCA’s half-owned, joint-venture company in Colombia, Productos Familia S.A. The purchase price is approximately SEK 165m on a debt-free basis.

The operation of the acquired company focuses on feminine care products, an area in which Algodonera Aconcagua currently holds a market share in Argentina of about 20%, placing the company in third position in the country. Regarding the market for feminine care products the three largest companies account for about 80% of sales.

Algodonera Aconcagua also holds a small market share in baby diapers and incontinence care, which presents the potential for future expansion in these segments.

“This acquisition gives us a strong foothold in what is a new and attractive market for us with considerable growth potential. The transaction is entirely in line with our strategy, which is to expand in selected, clearly identifiable emerging markets,” says President and CEO Jan Johansson.

Note The information provided herein is such that SCA is obligated to disclose pursuant to the Securities Markets Act.

SCA is a global hygiene and paper company that develops and produces personal care products, tissue, packaging solutions, publication papers and solid-wood products. Sales are conducted in some 90 countries. SCA has many well-known brands, including the global brands Tena and Tork. Sales in 2008 amounted to SEK 110 billion (EUR 11.5 billion). SCA has approximately 52,000 employees. More information at www.sca.com

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