Svenska Cellulosa Aktiebolaget (OMX: SCA B) says it has made a binding offer to acquire Everbeauty Corporation. SCA is offering approximately 1.9 billion SEK on debt-free basis. Everbeauty has annual sales of about 1.6 billion SEK and some 900 employees. Everbeauty would fit well under the Swedish company’s increased Hygiene products offering, with a strong position in Asia being one of the stated priorities.
The Taiwan-based disposable diaper manufacturer has operations mainly in Asia but also sales in Africa and Central America. In 1993 the company expanded into Mainland China with the founding of Everbeauty Shanghai Ltd. SCA would gain access to an extensive distribution network and sales organization.
Products include baby diapers (60% of sales) and incontinence care products (40%) with brands such as Sealer and Dr P. The company would fit well under SCA’s Hygiene products offering. Everbeauty is a market leader in incontinence care products in Taiwan and number 2 in Mainland. In baby diaper products it comes in at number 5 in both places. The proposal is subject to Everbeauty being privatized under Taiwanese law and also subject to certain other conditions such as authorities approvals. The deal is expected to close in the summer.
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