Home / News / SCA acquires US tissue producer Wausau Paper Corp.

SCA acquires US tissue producer Wausau Paper Corp.

23 Jan '16

2 min read

SCA, a leading global hygiene and forest products company, has acquired Wausau Paper Corp., a North American Away-from-Home tissue company, approved by Wausau's shareholders.

The transaction was completed on January 21, 2016 for total consideration of USD 513 million. The transaction expands SCA's North America footprint and production capacity, and the combined businesses will provide customers with a comprehensive portfolio of products. 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 restructuring costs are expected to amount to approximately USD 50 million, according to a press release.

Magnus Groth, president and CEO, SCA said, “SCA is the world's leading supplier of Away-from-Home tissue with the global brand Tork. This acquisition is an excellent strategic fit and makes us a strong supplier in North America. The acquisition will generate benefits for SCA and our customers.”

Don Lewis, president, AfH professional hygiene, SCA said, “On behalf of all SCA employees, I am excited to welcome Wausau Paper into the SCA family. The Wausau Paper product portfolio complements SCA's offerings in North America, and the combined brands will provide customers with superior sales, service, innovation and logistics.”

Mike Burandt, chairman and CEO of Wausau Paper said, “With the closing of this transaction, the Wausau team joins an organisation that shares our vision and values. We believe this provides an opportunity to capitalise on new resources and opportunities that will benefit our customers.” (GK)

Fibre2fashion News Desk - India