SCA will acquire Wausau Paper Corp. for $10.25 per share, or total consideration of $513 million (approximately SEK 4.2 billion) in cash. The completion of the transaction is subject to Wausau Paper shareholder and regulatory approvals. Closing is expected to take place during 1Q 2016.

Tissue Paper

SCA to acquire Wausau Paper for $513 million

Oct 13, 2015. /Lesprom Network/. SCA will acquire Wausau Paper Corp. for $10.25 per share, or total consideration of $513 million (approximately SEK 4.2 billion) in cash, as the company said in the press release received by Lesprom Network.

The Boards of Directors of both companies have unanimously approved a definitive merger agreement.

“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. We expect the acquisition to generate benefits for SCA and our customers,” says Magnus Groth, President and CEO, SCA.

The acquisition is expected to generate annual synergies amounting to approximately $40 million with full effect 3 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 $50 million.

The completion of the transaction is subject to Wausau Paper shareholder and regulatory approvals. Closing is expected to take place during 1Q 2016.

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.

SCA is a leading global hygiene and forest products company.