(Stockholm, January 26, 2016) SCA announced that its acquisition of Wausau Paper, a leading North American Away-from-Home Tissue Company, closed for the total consideration of USD 513 million in cash. The deal was previously announced in October of 2015.
SCA will consolidate Wausau Paper as of January 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, SCA said.
According to SCA, 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, SCA added. (Source: press release)