Breaking News

SCA sells packaging operations

January 17, 2012

Sale to DS Smith frees up focus for hygiene growth.

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.

Related Market:

Related Other:

  • The Year That Was 2016

    The Year That Was 2016

    Karen McIntyre, Editor||December 1, 2016
    The year 2016 included investments, new product development and an entrepreneurial spirit in nonwovens that will surely impac

  • The Household Wipes Market

    The Household Wipes Market

    Tara Olivo, Associate Editor||June 9, 2016
    Price-sensitive consumers choose wipes when the economy is up.

  • 5 Key Trends  in the Future of Global Nonwovens Industry

    5 Key Trends in the Future of Global Nonwovens Industry

    May 13, 2016
    The global nonwovens market will grow to be worth $50.8 billion in 2020, up from a value of $37.4 billion in 2015.