SCA divests publication paper mill in Laakirchen

  • Regulatory press release

SCA is divesting its Austrian publication paper mill in Laakirchen to Heinzel Group. In conjunction with the divestment, SCA and Heinzel Group have concluded a sales cooperation agreement.

In 2011 Laakirchen reported totaled sales of EUR 335m and had just over 500 employees. The annual capacity amounts to more than 500,000 tons.

The initial purchase consideration is EUR 100m with a possible maximum additional purchase price of EUR 100m based on a two-year profit-sharing model. In conjunction with the transaction, an impairment of EUR 50m has been recognized, which will be charged to profit in the fourth quarter of 2012.

The transaction is expected to be finalized in the first quarter of 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.

Stockholm, December 19, 2012

For further information, please contact:

Louise Tjeder, Director Investor Relations, +46 8 788 51 62
Jessica Ölvestad, Press and Media Officer, +46 8 788 52 82

NB: This information is such that SCA must disclose in accordance with the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on December 19, 2012, at 08.25 CET.