SCA Completes Acquisition of GP's European Tissue Business
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SCA (Stockholm, Sweden) reports that its acquisition of Georgia-Pacific's (Atlanta, Ga., USA) European tissue business (EMEA) has been completed. The purchase price totaled EUR 1.32 billion on a debt-free basis. The acquired operations had sales in 2011 amounting to EUR 1.25 billion.
GP has a well-established presence in Europe in both away-from-home and consumer at-home tissue products. Its products in both segments are marketed with the Lotus brand. The company Jan Johansson, president and CEO of SCA, noted. will maintain a presence in Europe primarily through regional offices for GP Cellulose and GP Harmon Recycling
The annual synergies are estimated at EUR 125 million, with full effect in three years after closing. Related costs are estimated at EUR 130 million.
The closing follows the EU clearance and its requirement that SCA divest Georgia-Pacific's consumer tissue business in the U.K. 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 200 million, which is in line with the expectations and does not change SCA's evaluation of the deal.
SCA produces personal care products, tissue, publication papers, and solid-wood products. Sales, conducted in some 100 countries, amounted to SEK 106 billion (EUR 11.7 billion) in 2011. SCA has approximately 32,000 employees.
GP is a global producer of building products, tissue, packaging, paper, cellulose, and related chemicals. The company employs nearly 35,000 people worldwide.
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