“Our hygiene and forest products businesses are two strong operations with attractive offerings in their respective industries. After a thorough analysis, our conclusion is that a split of SCA into two listed companies is the best way to continue to create shareholder value, customer benefits and further development opportunities,” says Magnus Groth, president and CEO of SCA.

An evaluation, mainly based on value creation and flexibility for the shareholders, has been made of various methods and structural alternatives to achieve a complete split of the two businesses into two independent companies. The conclusion is that a distribution and listing of SCA’s hygiene business will create more shareholder value and incur relatively low transactional risk and relatively low transaction costs.

“It is the Board of Directors´ opinion that the proposal to split the hygiene and forest products businesses into two listed companies increases the ability for each business to successfully realize its strategies and increase value for SCA’s shareholders. It is also pleasing that the main shareholders will support the proposal at the annual general meeting,” says Pär Boman, chairman of the Board of Directors of SCA.

Effective immediately, SCA’s Directors appointed by shareholders and CEO, Magnus Groth, have, in addition to current assignments  been appointed the Board of Directors and CEO of the parent company for the hygiene business. The intention is to appoint Ulf Larsson, current President of SCA Forest Products and a member of the Executive Management Team, CEO of the listed forest products company after the distribution of the hygiene business.

Effective immediately, the Board of Directors has also appointed Ulf Larsson, in addition to current assignments, executive vice president of SCA.

The intention is that the new listed hygiene company receives a new name and is registered in Stockholm and the forest products company keeps the name SCA and is registered in Sundsvall.