SCA bids for G-P tissue operations in Europe

Sweden – SCA has delivered a binding offer of Euro 1.32 billion to acquire the European tissue operations of Georgia-Pacific (G-P). The proposed transaction will be subject to consultation with employee representatives and also to approval by relevant competition authorities.

G-P has a well-established presence in Europe in both the consumer tissue and away-from-home product segments, with the former accounting for some 60% of total sales and the latter for around 30%; personal care products such as cotton pads and facial cleansing wipes make up 5%. These operations employ approximately 5000 people at 15 production sites in seven countries and achieved sales in 2010 amounting to Euro 1.25 billion. Under the proposed transaction, SCA has agreed to hire all current G-P employees.

Jan Johansson, President and CEO of SCA, comments: ‘The deal is a strategic fit and will strengthen our product offering and geographic reach in Europe.’ Annual synergies are estimated at Euro 125 million while related costs are put at around Euro 130 million. The group develops, produces and markets personal care products, tissue, packaging, publication papers and solid-wood products, employing some 45 000 people.