SCA purchases Drypers

The Swedish industry group SCA has acquired the Asian baby diaper company Drypers, which is based in Kuala Lumpur, for SEK 640 million.
     Dryper’s sales in 2003 reached SEK 550 million. It is the market leader in baby diapers in Malaysia (27 percent) and Singapore (32 percent) and also has fast-growing market positions in Thailand and the Philippines, according to SCA.
     In recent years, markets in the area have shown growth exceeding 5 percent.
     Drypers also holds a strong position in the incontinence segment and synergies will arise in the incontinence area as the Group’s production in the region can be concentrated to the Philippines, as well as in the form of technology support from SCA’s other operations in Personal Care.
     In addition, SCA’s sales organization in the area will be coordinated with Drypers’.
     The acquired company could also form a future platform for an introduction of feminine hygiene products in the area.
     The acquisition increases SCA’s total sales in Australia and Asia to slightly less than SEK 2,000 million, of which about two-thirds is related to hygiene products.

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