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SCA Acquires Argentinean Fem Hy Business

October 28, 2009

Company holds 20% marketshare.

SCA 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 SEK165 million 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 marketshare 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,” said president and CEO Jan Johansson.

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