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SCA divests publication paper mill in Laakirchen

2012-12-18 SCA is divesting its Austrian publication paper mill in Laakirchen to Heinzel Group. In conjunction with the divestment, SCA and Heinzel Group have concluded a sales cooperation agreement. Following the divestment of Laakirchen, SCA’s remaining publication papers operations will be concentrated to Sweden, close to its forest holding.

The initial purchase consideration is EUR 100m with a possible maximum


additional purchase price of EUR 100m based on a two-year


profit-sharing model. In conjunction with the transaction, an


impairment of EUR 50m has been recognized, which will be charged to


profit in the fourth quarter of 2012.In 2011 Laakirchen reported totaled sales of EUR 335m and had just over


500 employees. The annual capacity amounts to more than 500,000 tons.


In conjunction with the divestment, SCA and Heinzel Group have


concluded a sales cooperation agreement. SCA Forest Products’ and


Heinzel Group’s sales organisations complement each other and SCA will


have a stronger representation on several markets for its publication


paper, pulp and kraftliner products.


SCA’s remaining publication


papers operations will be concentrated to Sweden, close to its forest


holding.


The transaction is expected to be finalized in the first quarter of 2013 following approval by the relevant authorities.

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