Georgia-Pacific´s European tissue operations’ sales in 2010 amounted to 1.25 billion Euros and have EBIT margins that are on a similar level as for SCA´s tissue business.Georgia-Pacific´s acceptance of this offer is subject to consultations with works councils where appropriate.“The deal is a strategic fit and will strengthen our product offering and geographic reach in Europe. It also leads to substantial synergies”, says Jan Johansson, CEO of SCA.The annual synergies are estimated at 125 million Euros, with full effect in three years after closing. Related costs are estimated at 130 million Euros. Already in year one the transaction is estimated to contribute to an increase of earnings per share and cash flow. With fully realized synergies, earnings per share are expected to increase with approximately 1.70 Kronor.SCA has received long-term committed credit facilities. The financing is within the SCA´s target for debt/equity ratio.Georgia-Pacific has a well-established presence in Europe in both away-from-home and consumer tissue products. The products in both segments are in particular marketed with the well-known Lotus brand.Consumer tissue accounts for some 60 percent of total sales and away-from-home tissue accounts for approximately 30 percent of sales. Personal care products such as cotton pads and facial cleansing wipes account for some five percent. In the consumer tissue business, close to 70 percent of sales are branded products, and the remainder are private label products.Georgia-Pacific’s European tissue operations have approximately 5,000 employees and 15 production sites in seven countries.The transaction will be subject to customary consultation with employee representatives and will also be subject to approval by relevant competition authorities. /AA