SCA (SVCBY) , the Swedish conglomerate, saw its stock gain in the first hour of trading Monday after its €2.7 billion ($2.8 billion) purchase of Germany's BSN Medical.

SCA, whose products range from personal care to forestry, saw shares jump 4.01% in Stockholm to trade at Skr264.90 each, taking the year-to-date gain to 5.89%.

The maker of Tena incontinence products and Cushelle toilet paper announced it had entered an agreement to buy medical solutions company BSN from private equity firm EQT. The purchase price amounts to €2.7 billion on a debt and cash-free basis.

SCA said the acquisition will expand its market presence in the medical product categories, which share characteristics with our incontinence business. It will also strengthen its customer offering and market access.

The transaction is subject to regulatory approvals and is expected to close in the second quarter of 2017.

BSN medical develops, manufactures, markets and sells products within wound care, compression therapy and orthopaedics.

"The BSN medical acquisition is an excellent strategic fit for SCA supporting our vision to improve well-being through leading hygiene and health solutions, two closely interlinked areas," SCA CEO Magnus Groth said in a statement on Monday.

"Our incontinence business, with the global leading TENA brand, shares similar positive market characteristics, customer and sales channels, which provide opportunities for accelerated growth through cross-selling," he added.

The acquisition is expected to be accretive to SCA's earnings per share from year one.

BSN is expected to see market growth of approximately 4%, mainly driven by an aging population, increased prevalence of chronic conditions and increased access to health care.

BSN medical reported net sales of €861 million in 2015 and earnings of €201 million.