SCA implements acquisitions and investments
SCA is carrying out two complementary acquisitions of packaging
companies, one in France and one in Finland, and two small investments
in the Sundsvall area.
Acquisition in France
The acquisition in France comprises two French packaging companies -
Anjou Emballages and Cartonnages Industriels Méhunois (CIM) - which are
both part of the Belgian Catala Group. Combined, the companies have
sales corresponding to SEK 310 M, with a total of about 100 employees.
On a debt-free basis, the purchase price amounts to SEK 213 M, which
corresponds to 5.6 times operating profit before depreciation (EBITDA),
calculated on earnings during the most recent 12 months. It is estimated
that the acquisition will result in a CVA index of approximately 1.5,
thereby exceeding SCA's weighted average cost of capital (WACC) by at
Anjou Emballages, located near Nantes, and CIM, located near Orléans,
are conversion units that produce corrugated-board packaging and offer
more advanced packaging solutions for the industrial segment. As part of
its own merchanting operations, Anjou Emballages also offers molded
plastics and other types of plastic packaging. The customer base is
diversified, with Anjou Emballages focusing on industrial customers,
while CIM focuses more on packaging for consumer products and
Acquisition in Finland
SCA has acquired all of the shares in the Finnish packaging company
Pakkausjaloste Oy (packaging services), which is active in the
conversion of corrugated board. Pakkausjaloste has sales corresponding
to SEK 60 M, with some 60 employees. At the seller's request, the
purchase price is not being disclosed. It is estimated that the
acquisition will result in a CVA index of approximately 1.7, thereby
exceeding SCA's weighted average cost of capital (WACC) by at least 70%.
The company operates four conversion units in southern and central
Finland and markets such products as corrugated-board boxes,
presentation materials and specialty items.
Investments within Forest Products
A coating line at the Ortviken paper mill will be rebuilt and modernized
at a cost of SEK 158 M. The new equipment will further improve the
quality of the LWC paper produced at the mill, while the upgraded
coating technology will provide scope for increased production.
Drying capacity at the Östrand pulp mill will be increased at a cost of
SEK 109 M. Currently, a certain amount of the pulp produced at the plant
is pumped to M-real's adjacent Wifstavarv mill. As a result of this
investment in increased drying capacity, the pumping of pulp can be
discontinued without causing any reduction in production. This will
improve the internal supply of pulp within SCA, at the same time as
quality development can be focused on the Group's internal pulp needs.
Wifstavarv will, however, continue to receive its supply of energy from
the Östrand pulp mill.
Stockholm, 13 November 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 8 788 5234
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