April 2024 news: With the privatization and delisting of Vinda International settled, the tissue giant has officially entered the "Tanoto era". Along with the founder Li Chaowang, there was also the original largest shareholder Essity AB (Essity AB), which held about 621 million shares (accounting for 51.59%), which was acquired by Asia-Pacific Resources Group, a subsidiary of Singapore's Golden Eagle Group, at a premium of HK$23.50 per share, equivalent to about 13.48 billion yuan.
Some industry insiders pointed out that with the rise in the price of pulp raw materials, profitability has become a difficult problem in front of the paper industry. In 2022, OxyRay's revenue increased by 28% year-on-year to SEK 156.2 billion (about RMB 105.3 billion), but net profit fell by more than 35% year-on-year to SEK 5.567 billion. Net profit margin fell from 7.07% to 3.56%.
On the other hand, Vinda International's revenue growth continued to slow down, and net profit has declined for three consecutive years. Oxerex does not participate in daily operations, but only regards it as a financial investment, and chooses to cash out for profit considerations, which is in line with the changes in the current market environment.
In April last year, the Swedish personal care manufacturer announced that it was launching a strategic review of Vinda's stake and private label consumer tissue business in Europe due to the lack of long-term value creation, so as to reduce the proportion of consumer tissue business.
SCA Ortviken pulp mill in Sundsvall, Sweden
According to public information, Ashray is the largest consumer tissue manufacturer in Europe and the second largest in the world, headquartered in Stockholm, Sweden, with four business divisions: Consumer Products Americas, EMEA (Europe, Middle East and Africa) Consumer Products, Professional Hygiene Products, and Health and Medical Products.
It has brands such as tissue "Depot Tempo", diapers "Sealer", sanitary napkins "Light Curve Libresse", adult diapers "Bao Adult Dr.P", sanitary consumer products "Duokang TORK", adult incontinence products "TENA", baby care products "Libreo Libero", etc., and its products are sold to more than 150 countries and regions.
Founded in 1929 by the merger of ten Swedish forestry companies, the parent company, Svenska Cellulosa Aktiebolaget (SCA), owns the largest privately owned forest in Europe (2.6 million hectares) and provides customers with packaging paper, pulp, wood products, renewable energy, efficient transport and other services. [Note: In June 2016, SCA spun off the group's health and tissue paper business, and in June 2017, SCA was successfully listed.]
Over the course of nearly 100 years, SCA has grown its strength through "Buy, Buy, Buy", including MölnlyckeHealth Care, a leading manufacturer of disposable hygiene products in Western Europe, PWA, a paper and packaging company headquartered in Germany, and Georgia Pacific in the United States, whose tissue business in North America is located.
In 07, SCA spent 672 million euros to acquire Procter & Gamble's European hygiene products business, including Depot. Founded in 1929, Tempo means speed and pace in German, meaning anything is possible. With the convenience and high quality of replacing cotton handkerchiefs, it has quickly become a well-known brand, and its product categories have gradually expanded into seven categories, including paper towels, soft drawers, box drawers, cotton soft towels, wet wipes, roll paper, and wet toilet paper.
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In 2012, SCA acquired Taiwan-based hygiene products company All Nippon America for $290 million. The latter mainly produces, operates and distributes adult incontinence care products and baby diaper products, and owns brands such as Bao Daren, Boo Shule, Mama Le, and Little Naughty, with business in China and parts of Southeast Asia.
The following year, SCA bought nearly 300 million shares of Vinda for HK$8.648 billion through a tender offer, thus becoming the controlling shareholder. [Note: Before Vinda International went public in 07, SCA had already invested in the shares, and since then it has become the second largest shareholder of the company through two increases]
In 2014, Vinda International integrated SCA's businesses in Chinese mainland, Hong Kong and Macau for a total price of HK$1.14 billion, obtained the permanent and exclusive right to use "Depot" in the above regions on a royalty-free basis, and became the agent operator of TENA and Torkon, thereby leveraging the layout of the high-end market and achieving rapid growth.
Write at the end
With the exit of Ancera, under the new licensing agreement, Vinda International will be required to pay royalties for the royalties to use the Global Brand and the Depot Brand respectively by the end of 2026. This may further increase the cost burden for Vinda International, which "increases revenue but does not increase profits", and its future operation is also facing certain uncertainties. Further development remains to be seen.