SCA has continued its drive to be a leader in the South American hygiene market. This week, the Stockholm, Sweden-based hygiene products maker acquired the remaining 50% stake in PISA (Papeles Industriales S.A.) making it the sole owner of the Chilean hygiene company. The purchase price was reported at $76 million.
PISA’s annual sales are approximately $115 million. While its primary activities lie in the away-from-home and consumer tissue markets, SCA has been using the PISA’s sales and distribution networks as a means to introduce its TENA adult incontinence products since acquiring the initial 50% stake in the company in 2003.
“The time is ready for us to take the next step in our expansion in Latin America, where the PISA acquisition further strengthens our presence in this important growth market,” says Jan Johansson, SCA CEO and president.
In recent years, SCA has made its plans to expand in Latin America clear. In September 2011, the company acquired Descart, a family-owned maker of incontinence products in Brazil. At the time of the acquisition Johansson said that it was the result of a long-term effort to establish itself in Brazil.
Beyond Latin America, SCA has also been active in Asia, recently acquiring brands in Taiwan and China, while promoting its own brands in the region and has focused on growth in Turkey with two major acquisitions.
In other news, SCA has released its results for the first quarter of 2012. The company reported that sales increased just 1% to SEK19.2 billion. During this time, the company’s hygiene operations performed well, experiencing higher market shares and improved earnings compared to previous years.