SCA is acquiring the Brazilian hygiene products company Pro Descart in a deal valued at $71 million on a debt-free basis. The company has annual sales of $57 million.
Pro Descart is a family-owned company focused on incontinence care products but also sells baby diapers and wet wipes. The company, with approximately 400 employees, has manufacturing in the Sao Paulo area. It has a number two position in Brazil's adult incontinence market. The most highly populated country in South America, Brazil's hygiene products market has a good growth potential, especially for incontinence care products, which has shown double digit growth.
“I am very happy that we are now establishing ourselves in Brazil, which is also of strategic significance,” comments Jan Johansson, president and CEO of SCA. “We have for some time worked on finding the right solution for entering this important emerging market. With this acquisition of Pro Descart, we now have a presence throughout Latin America.”
SCA picks up Brazilian inco maker