SCA sells its publication paper mill in Laakirchen, Austria, for Euro 100 million

Dec 19, 2012. /Lesprom Network/. SCA is divesting its Austrian publication paper mill in Laakirchen, Austria, to Heinzel Group. In conjunction with the divestment, SCA and Heinzel Group have concluded a sales cooperation agreement, as the company said in the press release received by Lesprom Network. In 2011 Laakirchen reported totaled sales of Euro 335 million and had just over 500 employees. The annual capacity amounts to more than 500,000 tons. The initial purchase consideration is Euro 100 million with a possible maximum additional purchase price of Euro 100 million based on a two-year profit-sharing model. In conjunction with the transaction, an impairment of Euro 50 million has been recognized, which will be charged to profit in the 4Q 2012. The transaction is expected to be finalized in the 1Q 2013 following approval by the relevant authorities. In conjunction with the divestment, SCA and Heinzel Group have concluded a sales cooperation agreement. SCA Forest Products’ and Heinzel Group’s sales organisations complement each other and SCA will have a stronger representation on several markets for its publication paper, pulp and kraftliner products. The sales collaboration is scheduled to come into effect when the transaction has been finalized. Following the divestment of Laakirchen, SCA’s remaining publication papers operations will be concentrated to Sweden, close to its forest holding. SCA is a leading global hygiene and forest company that develops and produces personal care products, tissue and forest products.