SCA’s acquisition of Georgia-Pacific´s European tissue business has been completed. The purchase price amounts to EUR 1.32 billion on a debt-free basis. The acquired operations had sales in 2011 amounting to EUR 1.25 billion.
Georgia-Pacific has a well-established presence in Europe in both away-from-home and consumer tissue products. As such, the acquisition reinforces SCA’s position as a European leader in the consumer tissue and hygiene industry.
The closing follows EU Competition Commission clearance of the acquisition in the UK and Republic of Ireland, conditional on divestment of business activities regarding the production and the supply of both manufacturer branded and private label toilet paper and household towels. This was where the Commission perceived the transaction would have otherwise been detrimental to sector competition. This includes a range of toilet paper and household towel brands including Thirst Pockets, InverSoft, KittenSoft, NouvelleSoft and Dixcel.
SCA will retain the consumer facial tissue brand Lotus. In addition, SCA will also retain the Georgia-Pacific away-from-home tissue products division, including the Lotus Professional brand. In the UK & ROI, the acquisition will boost SCA’s share of the away from home tissue market to approximately 28%.
“We are pleased that we now have closed the deal,” said Jan Johansson, president and CEO of SCA. “The acquisition is a strategic fit that will strengthen our product offering with well-known brands and geographic reach in Europe. It also leads to substantial synergies.”