SCA to acquire Wausau Paper Corp. for $513 million in cash
October 15, 2015 - Sweden
Sweden's SCA, a leading global hygiene and forest products company, and Wausau Paper Corp., a North American Away-from-Home tissue company, have announced that the former will acquire Wausau Paper for $10.25 per share or total consideration of $513 million (approximately Swedish krona 4.2 billion) in cash, according to a press release.
The boards of directors of both companies have unanimously approved a definitive merger agreement. The merger consideration represents a premium of 40.6 per cent to Wausau Paper’s closing price on October 12, 2015 and a premium of 11.3 per cent to the Wausau Paper 52 week volume weighted average price. SCA has funding available.
Wausau Paper is one of the largest Away-from-Home tissue companies in North America. With approximately 900 employees, the company manufactures and markets Away-from-Home towel and tissue products along with soap and dispensing systems through its Artisan, DublNature, DublSoft and EcoSoft brands. Wausau Paper’s advanced tissue technology with manufacturing flexibility enables it to produce its towels and tissue entirely from recycled paper, which will further contribute to SCA’s efforts to create environmentally-friendly products and extend its sustainability commitment.
The combined operations will provide customers with access to a comprehensive portfolio of food service offerings and premium tissue and washroom products. SCA will continue to honour Wausau Paper’s existing customer contracts and programmes.
“SCA is the world leading supplier of Away-from-Home tissue with the global brand Tork. The acquisition of Wausau Paper is an excellent strategic fit and strengthens our presence in North America. The Wausau Paper product portfolio complements SCA’s offerings in North America and gives us access to premium tissue in that region. We expect the acquisition to generate benefits for SCA and our customers,” said Magnus Groth, President and CEO, SCA.
Michael C. Burandt, Chairman and CEO of Wausau Paper said, “Our Board has undertaken a thorough process to explore all of Wausau Paper’s options and has determined SCA’s offer creates substantial value and is in the best interests of the company and its shareholders. This transaction is a testament to our talented team of employees and the strong, focused company that they have worked to create. Our customers will benefit from expanded products and services from a company that shares similar values around customer service and sustainability.”
The acquisition is expected to generate annual synergies amounting to approximately $40 million with full effect three years after closing. Synergies are expected in sourcing, production, logistics, reduced imports, increased volumes of premium products and reduced SG&A costs. The restructuring costs are expected to amount to approximately $50 million. (SH)
The boards of directors of both companies have unanimously approved a definitive merger agreement. The merger consideration represents a premium of 40.6 per cent to Wausau Paper’s closing price on October 12, 2015 and a premium of 11.3 per cent to the Wausau Paper 52 week volume weighted average price. SCA has funding available.
Wausau Paper is one of the largest Away-from-Home tissue companies in North America. With approximately 900 employees, the company manufactures and markets Away-from-Home towel and tissue products along with soap and dispensing systems through its Artisan, DublNature, DublSoft and EcoSoft brands. Wausau Paper’s advanced tissue technology with manufacturing flexibility enables it to produce its towels and tissue entirely from recycled paper, which will further contribute to SCA’s efforts to create environmentally-friendly products and extend its sustainability commitment.
The combined operations will provide customers with access to a comprehensive portfolio of food service offerings and premium tissue and washroom products. SCA will continue to honour Wausau Paper’s existing customer contracts and programmes.
“SCA is the world leading supplier of Away-from-Home tissue with the global brand Tork. The acquisition of Wausau Paper is an excellent strategic fit and strengthens our presence in North America. The Wausau Paper product portfolio complements SCA’s offerings in North America and gives us access to premium tissue in that region. We expect the acquisition to generate benefits for SCA and our customers,” said Magnus Groth, President and CEO, SCA.
Michael C. Burandt, Chairman and CEO of Wausau Paper said, “Our Board has undertaken a thorough process to explore all of Wausau Paper’s options and has determined SCA’s offer creates substantial value and is in the best interests of the company and its shareholders. This transaction is a testament to our talented team of employees and the strong, focused company that they have worked to create. Our customers will benefit from expanded products and services from a company that shares similar values around customer service and sustainability.”
The acquisition is expected to generate annual synergies amounting to approximately $40 million with full effect three years after closing. Synergies are expected in sourcing, production, logistics, reduced imports, increased volumes of premium products and reduced SG&A costs. The restructuring costs are expected to amount to approximately $50 million. (SH)