Cleanzine: your weekly cleaning and hygiene industry newsletter 25th April 2024 Issue no. 1111
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SCA's acquisition of Georgia-Pacific's European tissue business now complete
SCA's 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, as well as 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.
26th July 2012