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SCA clinches Georgia-Pacific deal

SCA’s €1.32 billion acquisition of Georgia-Pacific´s European tissue business has been completed. The acquired operations had sales in 2011 amounting to €1.25 billion.

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 to be divested account for sales of approximately €200 million.

“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 €125 million, with full effect in three years after closing. Related costs are estimated at €130 million.

In a separate transaction, SCA as agreed to sell its packaging division to the UK-based DS Smith Group for €1.7 billion.

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