business buildings

Essity: A Hygiene And Health Powerhouse Is Spun-Off

Sweden’s Svenska Cellulosa Aktiebolaget or SCA dates back to 1929 as a holding company for ten forestry businesses. Over the proceeding decades, SCA began acquiring various hygiene businesses although they remain the largest private land owner of forest land in Europe holding roughly 2.6 million hectares (6.4 million acres). Separating these two businesses made sense and hopefully will allow the true value of each to be realized.  In 2016, Essity (OTC:ESSYY) accounted for 86% ($11.5 billion) of SCA’s total revenue so while SCA was originally founded as a forest products company, in reality, it was a health and hygiene business and had been for many years. It earned around $480 million and generated $790 million in owner earnings last year. Read more.

Source: Seeking Alpha, June 19, 2017

business buildings

SCA to Split Into Two Companies

SCA, a company know in the HME industry for its hygiene and incontinence products, such as TENA, will be splitting into two companies, SCA and Essity, with Essity being the company working in the healthcare market. SCA was founded 1929 in Sweden as a forest products company, and over the years the company not only expanded into the international market, but diversified its range of offerings to include incontinence products and other offerings. Most recently, it acquired well-known BSN medical. Eventually, SCA’s health offerings began to eclipse its forest products division. As of 2016, 86 percent of SCA serves the global hygiene and health market, while only 14 percent offers forest products. Moreover, synergies between the two operations have diminished over time, according to SCA.  Read more.

Source: HME Business, April 13, 2017