SCA, a leading global hygiene and forest products company, will acquire Wausau Paper for US$513 million in cash.
The boards of directors of both companies have unanimously approved a definitive merger agreement.
Wausau Paper is one of the largest away-from-home tissue companies in North America. With approximately 900 employees, the company manufactures and markets away-from-home towel and tissue products along with soap and dispensing systems through its Artisan™, DublNature®, DublSoft® and EcoSoft® brands. Wausau Paper’s advanced tissue technology with manufacturing flexibility enables it to produce its towels and tissue entirely from recycled paper, which will further contribute to SCA’s efforts to create environmentally-friendly products and extend its sustainability commitment.
“SCA is the world leading supplier of away-from-home tissue with the global brand Tork®. The acquisition of Wausau Paper is an excellent strategic fit and strengthens our presence in North America. The Wausau Paper product portfolio complements SCA’s offerings in North America and gives us access to premium tissue in that region,” says Magnus Groth, President and CEO, SCA.
The combined operations will provide customers with access to a comprehensive portfolio of food service offerings and premium tissue and washroom products.
“This acquisition will benefit customers by providing access to the superior sales, service, innovation and logistics that the combined business can provide. It will expand SCA’s premium tissue and washroom assortment and give Wausau Paper customers the ability to purchase products from SCA’s industry-leading food service offerings – in essence offering customers a ‘one-stop shop’ for all professional hygiene needs,” says Don Lewis, president, SCA Americas.
Wausau Paper’s reported sales for the first half of year 2015 amounted to US$175 million, EBITDA of US$32 million and operating profit of US$11 million.
The completion of the transaction is subject to Wausau Paper shareholder and regulatory approvals. The Wausau Paper board will recommend that its shareholders vote in favor of the acquisition by SCA. Closing is expected to take place during Q1 2016.
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