SCA has today signed an agreement for the sale of its North American packaging operations. The purchaser is Metalmark Capital and the purchase price amounts to USD 400m. The North American operations have annual sales of approximately USD 430m. The transaction is expected to be completed during the first quarter of 2007. The purchase price will be paid in cash.
The sold operations comprise protective packaging, consumer packaging and temperature-assurance packaging solutions. The operations have a total of approximately 2,100 employees. The operations account for approximately 10% of SCA’s total sales within its business area Packaging. This transaction will provide full coverage for the carrying amount of goodwill and other book values. Earnings per share will be affected in the short term by SEK -0.2 on a yearly basis, while the net debt will be reduced by approximately SEK 2.8 billion.
Closing of the transaction is subject to receipt of American regulatory approvals and satisfaction of other customary closing conditions.
Comments will be made by President and CEO Jan Åström and CFO Lennart Persson at a telephone conference for media and analysts. The telephone conference will take place on Tuesday, 23 January 2007 at 13.00 CET. If you would like to participate, please call:
A power point presentation will be available at www.sca.com in connection with the phone conference.
Metalmark Capital is a private equity firm established by the principals of Morgan Stanley Capital Partners (MSCP). Since 1986, the Metalmark Capital and MSCP funds have invested USD 7 billion of equity capital in over 100 companies in a broad range of industries, including their focus sectors of industrials, healthcare, financial services and natural resources. For more information on Metalmark Capital, please visit www.metalmarkcapital.com
SCA is a global consumer goods and paper company that develops, produces and markets personal care products, tissue, packaging solutions, publication papers and solid-wood products. SCA creates value through knowledge of the needs of consumers and customers, regional presence and efficient production. Sales are conducted in some 90 countries and production in about 40 countries. Annual net sales exceed SEK 96 billion (EUR 11 billion). SCA had approximately 50,000 employees at the beginning of 2006. SCA shares are traded on the Stockholm, London and New York stock exchanges.