SCA acquires protective packaging business

  • Regulatory press release

SCA acquires protective packaging business Earlier this year SCA acquired Tuscarora packaging company, a leading supplier in the US of packaging systems used to protect electronic and industrial products. Tuscarora has achieved an average annual growth of 15% in the past six years through organic growth and acquisitions of local and specialized entrepreneurial companies. In accordance with this strategy Tuscarora has today acquired the privately-owned US protective packaging company RPA for USD 3.7 M, nearly SEK 40 M, on a debt-free basis. The acquisition corresponds to 3.5 times operating surplus (EBITDA) and 3.7 times operating profit (EBIT), based on projected earnings in 2001. The acquisition is expected to result in a CVA index of about 2.6, exceeding SCA's weighted capital cost by at least 160%. Ohio-based RPA custom designs and manufactures specialty containers as well as interior protective packaging. RPA presently supplies packaging solutions to customers manufacturing products for the high-technology and telecom sectors and automotive and furniture industries. It has annual sales of approximately USD 4.5 M. Stockholm, 15 June 2001 SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ) Communications and Investor Relations For further information please contact: Peter Nyquist, Vice President Communications and Investor Relations, phone: +46 70 575 2906 ------------------------------------------------------------ This information was brought to you by Waymaker The following files are available for download: