Georgia-Pacific has a well-established presence in Europe in both away-from-home and consumer tissue products. Their products in both segments are marketed with the well-known Lotus brand.
“We are pleased that we now have closed the deal,” says Jan Johansson, president and CEO of SCA. “The acquisition is a strategic fit that will strengthen our product offering with well-known brands and geographic reach in Europe. It also leads to substantial synergies.”
The annual synergies are estimated at €125 million, with full effect in three years after closing. Related costs are estimated at €130 million.
The closing follows the EU clearance and its requirement that SCA divest Georgia-Pacific´s consumer tissue business in the U.K., including production capacity, Georgia-Pacific´s consumer tissue branded business in Benelux licensing out the Lotus brand during a limited time, and some of Georgia-Pacific´s and SCA´s retailer branded business in Scandinavia including production capacity. The businesses that are to be divested account for sales of approximately €200 million, which is in line with expectations and does not change SCA´s evaluation of the deal.