SCA to buy Wausau Paper
SCA to acquire Wausau Paper, a North American Away-from-Home Tissue company, for USD 513 million in cash.
The combined operations will provide customers with access to a comprehensive portfolio of food service offerings and premium tissue and washroom products, according to SCA.
The acquisition is expected to generate annual synergies amounting to approximately USD 40 million with full effect three years after closing. Synergies are expected in sourcing, production, logistics, reduced imports, increased volumes of premium products and reduced SG&A costs.
"The acquisition of Wausau Paper is an excellent strategic fit and strengthens our presence in North America. The Wausau Paper product portfolio complements SCA’s offerings in North America and gives us access to premium tissue in that region. We expect the acquisition to generate benefits for SCA and our customers,” says Magnus Groth, President and CEO, SCA.
Wausau Paper’s reported sales for the first half year 2015 amounted to USD 175 million, SEK 1,5 billion.
http://finance.yahoo.com/news/sca-acquire-wausau-paper-corp-061500091.html