November 2011
Over The Wire Tissue Edition
Archive/Subscribe | TAPPI.org | Advertise | TAPPI Press Catalog
 

SCA Establishes Joint Venture in Australasia with Pacific Equity Partners

Print Print this article | Send to Colleague

SCA, Sweden, this week reported that it has decided to form a joint venture partnership for its existing operations in Australasia with the Australian company Pacific Equity Partners (PEP). SCA and PEP Fund IV will each hold 50% of the company.

SCA’s operations in Australia, New Zealand, and Fiji employ about 1,500 people. In 2010, the net sales of this business was SEK 4,400 million (approximately $668 million), with some 70% related to tissue and some 30% related to personal care products. In the region, SCA manufactures and markets a number of leading brands including TENA, Tork, Sorbent, Purex, Libra, Treasures, Deeko, and Handee Ultra.

The transaction involves a deconsolidation of the business, which will be financially reported as a joint venture according to the equity-share method.

In connection with the refinancing of the business and the divestment of 50% of the equity, SCA will receive SEK 3,200 million (approximately $484 million). Also, there will be a SEK 700 million (approximately $105 million) write-down of the tangible book value, which will impact fourth quarter results.

"This deal strengthens our operations in Australia and New Zealand, and it secures our access to local competence and the local capital market. This enables a faster development of the operations", says Jan Johansson, president and CEO of SCA.

The deal will be subject to approval from relevant authorities. Closing is expected to happen within two to three months.

 

 

Share Share on Facebook Share on Twitter Share on LinkedIn

Buckman

TAPPI Over the Wire - Tissue Edition | 15 Technology Pkwy. S. | Norcross, GA 30092 USA | Voice: 770.446.1400 | Fax: 770.446.6947