This acquisition is an important step in improving profitability within SCA’s European consumer tissue operations. SCA intends to further strengthen its product offering of brands and supply of quality private label products as well as greatly strengthening product development based on an awareness of consumer needs. ,,Jan Åström, President and CEO of SCA, comments: “We know that consumers throughout Europe are closely involved with their tissue products. Many consumers have greater demands than those being met by the market today. This acquisition will help us to take important steps towards improving our customer offer and profitability in our European consumer tissue operation.” ,,The acquisition will give SCA access to additional established high quality brands. SCA will acquire the Tempo brand, the market leader in paper handkerchiefs in Western Europe and Hong Kong. In addition, SCA will obtain an exclusive licence in Europe to use the well known Bounty and Charmin brands for kitchen rolls and toilet tissue respectively. With this acquisition, SCA will increase its branded portfolio, providing the platform for consumer driven awareness. SCA plans to invest significantly in the company’s brands in terms of innovation and marketing over the next few years. ,,The purchase price is EUR 512 million and will be paid in cash. Annual net sales are close to EUR 500 million. The EBITDA margin is on a par with SCA’s total tissue operations. Synergies are expected to be considerable. ,,Procter & Gamble’s five facilities are included in the acquisition. The plants are located in Manchester (England), Witzenhausen and Neuss (Germany), Orléans (France), and Lucca (Italy) and have a total of approximately 1,100 employees. SCA will have good opportunities to improve the supply chain and cost structure for the brands involved. The acquisition will give SCA further possibilities to optimize distribution and logistics to better serve SCA´s retail customers. ,,
,Ivar Palo
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