SCA Closes on Wausau Paper Acquisition
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SCA's (Sweden) acquisition of Wausau Paper Mosinee, Wis., USA, a North American Away-from-Home tissue company, has been closed for the total consideration of $513 million in cash. SCA consolidated Wausau Paper effective Jan. 21, 2016.
"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 stronger supplier in North America. The acquisition will generate benefits for SCA and our customers," said Magnus Groth, president and CEO, SCA.
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 $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 $50 million.
