SCA has divested its packaging operations – with the exception of two kraftliner mills in Sweden –to DS Smith for €1.7 billion on a debt-free basis as part of an effort to enable growth in the company’s hygiene business.
The packaging operations, excluding the two kraftliner mills, had net sales in 2010 of approximately €2.5 billion and an operating profit, excluding restructuring costs, of about €117 million. The operations have approximately 12,000 employees.
Regarding the French part of the packaging operations, the price for which is included in the announced purchase price, DS Smith has made a formal offer to acquire this business. This process is subject to consultation with relevant works councils and will be treated separately.
SCA’s two kraftliner mills in Sweden are not included in the transaction as they are well integrated with SCA´s forest products operations.
“Over the years we have developed our packaging business and we are divesting a competitive operation to an industrial buyer who can continue to develop it”, says Jan Johansson, President and CEO of SCA.