European Commission approves SCA’s purchase of Procter & Gamble’s European tissue operations
- Regulatory press release
The European Commission has today, 5 September 2007, approved SCA’s acquisition of Procter & Gamble’s European tissue operations with a number of strong and well-known brands. The acquisition should be seen against the background of SCA’s aim to be the undisputed leader within the tissue category in Europe and the preferred choice for European consumers and customers.
The purchase price is EUR 512 million and will be paid in cash in two stages. A first payment of EUR 347 million will be made when the deal is completed, planned for 1 October. The second part of the purchase price, EUR 165 million, will be paid following agreed technical adjustments at certain plants, which are expected to be completed in March 2008.
Lennart Persson, acting President and CEO of SCA, comments: “The acquisition gives SCA key prerequisites for the creation of an even better platform for consumer-driven awareness and will strengthen our market positions in several important markets.”
He adds: “Today’s decision by the European Commission means that we can start the integration work. At a later date, we plan to provide additional financial information, decisions on possible restructuring, and the synergy effects of the acquisition, which will primarily affect brands and markets.”
The approval is conditional on SCA divesting its present operations within handkerchiefs under the Softis brand in Germany and Austria and, if the purchaser so requires, related production capacity and equipment. The sale of Softis handkerchiefs in Germany and Austria amounted to over EUR 20 million in 2006. In conjunction with a sale of Softis, a licence will be granted to the purchaser to use SCA’s Zewa brand (for handkerchiefs) for a limited period.
See also press release dated 12 March 2007.
Stockholm, 5 September 2007
For further information please contact
Bodil Eriksson, SVP, Corporate Communications, telephone +46 8 788 52 34
Pär Altan, VP, Media Relations, telephone +46 8 788 52 37
Investor relations:
Johan Karlsson, VP, Investor Relations, telephone +46 8 788 51 30
Johan Andersson, Business Analyst, telephone +46 8 788 52
NB
This information is such that SCA must disclose in accordance with the Securities and Clearing Operations Act. The information was submitted for publication on 5 September 2007 at 19.10 CET.