$513m deal to make SCA stronger Away-from-Home tissue supplier in North America.
The shareholders of North American AFH (Away-from-Home) tissue company Wasau Paper have approved the proposed takeover by Sweden's tissue, hygiene and forest products giant SCA (Svenska Celulosa Aktiebolaget). According to a joint press released on 20 January, the acquisition is scheduled to be completed on 21 January, with SCA paying a total of $513m, approximately €470m in cash.
"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.
SCA is expecting the transaction to generate annual synergies amounting to approximately USD 40 million with full effect three years after closing. the company puts the restructuring costs at approximately USD 50 million.