Svenska Cellulosa AB SCA : SCA's acquisition of Georgia-Pacific's European tissue business has been closed
07/19/2012| 06:20am US/Eastern
SCA's (STO:SCAA)(STO:SCAB) acquisition of Georgia-Pacific´s European
tissue business has been completed. The purchase price amounts to EUR
1.32 bn on a debt-free basis. The acquired operations had sales in 2011
amounting to EUR 1.25 bn.
Georgia-Pacific has a well-established presence in Europe in both
away-from-home and consumer tissue products. Their products in both
segments are in particular marketed with the well-known Lotus brand.
"We are pleased that we now have closed the deal. The acquisition is a
strategic fit that will strengthen our product offering with well-known
brands and geographic reach in Europe. It also leads to substantial
synergies", says Jan Johansson, President and CEO of SCA.
The annual synergies are estimated at EUR 125m, with full effect in
three years after closing. Related costs are estimated at EUR 130m.
The closing follows the EU clearance and its requirement that SCA divest
Georgia-Pacific´s consumer tissue business in the UK including
production capacity, Georgia-Pacific´s consumer tissue branded business
in Benelux licensing out the Lotus brand during a limited time, and some
of Georgia-Pacific´s and SCA´s retailer branded business in Scandinavia
including production capacity. The businesses that are to be divested
account for sales of approximately EUR 200m, which is in line with the
expectations and does not change SCA´s evaluation of the deal.
See previous press releases regarding the transaction dated 10 November
2011, 8 February 2012 and 5 July 2012.
Stockholm, Sweden, 19 July 2012
NB: This information is such that SCA must disclose in accordance with
the Securities Markets Act. The information was submitted for
publication on 19 July 2012 at 12.05 CET.
SCA is a global hygiene and forest company that develops and produces
personal care products, tissue, publication papers and solid-wood
products. Sales are conducted in some 100 countries. SCA has many
well-known brands, including the global brands TENA and Tork. Sales in
2011 amounted to SEK 106 billion (EUR 11.7 billion). SCA has
approximately 32,000 employees. More information at www.sca.com
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