SCA to sell Horwich, Bridgend and Drammen tissue plants
SCA has given details on the divestiture of tissue operations related to its takeover of Georgia-Pacific's European tissue business. The company intends to dispense with the Bridgend and Drammen integrated tissue mills and the Horwich converting facility.
SCA has announced plans to divest the tissue plants Horwich and Bridgend in the UK as well as Drammen in Norway to comply with competition rules related to its takeover of Georgia-Pacific’s (G-P) European tissue business. According to the company, production capacity of the mills totals 100,000 tpy and has a value of approximately €200m in sales.
Jan Johansson, SCA’s CEO and President, said there was interest from industrial buyers as well as from private equity or financial investors to acquire the sites. As to the transaction value, it was too early to give indications yet, he added. The sale is planned to be carried out within the six month time frame determined by the European Commission.
The sale of the operations in Norway and the UK is part of the EC clearance requirements for the Georgia-Pacific deal. The Commission’s approval was conditional upon the divestment of Georgia-Pacific’s consumer tissue business in the UK including production capacity, Georgia-Pacific’s Benelux consumer tissue branded business under the Lotus brand and some of Georgia-Pacific’s and SCA’s retailer branded business in Scandinavia including production capacity.
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