Clyde & Co, the largest international law firm in the GCC, have advised SCA, a global consumer goods and paper company that develops, produces and markets personal care products, tissue, packaging solutions, publication papers and solid-wood products, on a significant multi-jurisdictional joint venture with Nuqul Group, one of the leading industrial groups in the Middle East.
The deal involved the simultaneous acquisition of Nuqul’s feminine hygiene business in Egypt, Jordan, Saudi Arabia and the UAE, with due diligence on operations across the Levant and GCC.
”This joint venture gives us a unique platform for entering Egypt and the main markets of the Middle East with our successful feminine hygiene products,” says Gunnar Johansson, President of SCA Personal Care. “These markets have immense growth potential, and we expect to grow our sales in the region substantially. We aim to complement Nuqul’s product range with our own product range. Our ambition is to eventually extend our joint venture to other personal care categories in the future.”
Phil O’Riordan, a Dubai based corporate / M&A partner, led the Clyde & Co team advising on the cross-border transaction. He was assisted by associates Antony Turton and Naji Hawayek.
O’Riordan acknowledged the deal’s complexity, saying “Even SCA, who do a considerable number of cross border transactions around the world, had to say that this was a complex transaction to structure. It bodes well for the joint venture that all parties worked long and hard to find a workable structure and to complete this transaction. “
Tax advice on the Nuqul acquisition was provided by PriceWaterhouseCoopers (PWC). The PWC team on the transaction was led by tax director James Pollard.
About the companies
SCA is a global consumer goods and paper company that develops, produces and markets personal care products, tissue, packaging solutions, publication papers and solid-wood products. Sales are conducted in some 90 countries. SCA has annual sales in excess of SEK 101 billion (c. EUR 11 billion) and production facilities in more than 40 countries. SCA had approximately 50,000 employees at the beginning of 2007. SCA shares are traded on the Stockholm, London and New York stock exchanges. For more information, visit www.sca.com
Established in 1952, Nuqul Group (a conglomerate of 27 companies) is one of the leading industrial groups in the Middle East. Its line of business covers a wide range of products, including raw material and converted hygienic tissue paper, non-woven fabrics, processed meats, aluminium profiles, ready-mix concrete, synthetic sponge/foam, plastic pipes, stationery, and printed packaging materials