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Vinda International Holdings is to purchase SCA’s hygiene business in South East Asia, Taiwan and South Korea.

The divestment of the business for integration with Vinda was approved on 13 January and is expected to close on 1 February.

The two companies have signed an agreement regarding the exclusive license to market and sell the SCA brands; TENA (incontinence products), Tork (Away-from-Home tissue), Tempo (consumer tissue), Libero (baby diapers), and Libresse (feminine care) in South East Asia, Taiwan and South Korea.

Vinda will hold the rights to these product brands in these Asian markets. It will also acquire the brands Drypers, Dr.P, Sealer, Prokids, EQ Dry and Control Plus in these markets.

SCA will continue to provide innovation and technical support for the business.

Magnus Groth, president and chief executive of SCA, said: “Asia is an important growth market for SCA with a large population and low penetration of hygiene products.

“The approved transaction strengthens the collaboration between SCA and Vinda and enables us to further leverage on our strengths to build a leading Asian hygiene business.”

SCA has been a shareholder in Vinda since 2007 and it became its majority shareholder in late 2013. The company’s hygiene business in South East Asia, Taiwan and South Korea had net sales of approximately SEK 2.2 billion in 2014. It has approximately 1,600 employees and three personal care production sites in Malaysia and Taiwan.

Its Shanghai office will now stop operations following the transaction, leading to around SEK 90m in restructuring costs.