SCA Divests Laakirchen Publication Paper Mill
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SCA, Sweden, 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.
In 2011 Laakirchen reported totaled sales of EUR 335 million and had more than 500 employees. The annual capacity amounts to more than 500,000 metric tons.
The initial purchase consideration is EUR 100 million with a possible maximum additional purchase price of EUR 100 million based on a two-year profit-sharing model. In conjunction with the transaction, an impairment of EUR 50 million has been recognized, which will be charged to profit in the fourth quarter of 2012.
The transaction is expected to be finalized in the first quarter of 2013 following approval by the relevant authorities.
In regard to the sales cooperation agreement, SCA Forest Products' and Heinzel Group's sales organizations complement each other and SCA will have a stronger representation on several markets for its publication paper, pulp, and kraftliner products. The sales collaboration is scheduled to come into effect when the transaction has been finalized.
Following the divestment of Laakirchen, SCA's remaining publication papers operations will be concentrated in Sweden, close to its forest holding.
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