By Dominic Chopping

 

STOCKHOLM--Swedish hygiene product and paper company Svenska Cellulosa AB (SCA-B.SK) will buy New York-listed peer Wausau Paper Corp. (WPP) for $513 million, bolstering its position and production capacity in North America, it said Tuesday.

The boards of both companies have unanimously approved the $10.25 a share offer, which represents a 40.6% premium to yesterday's closing price.

"The acquisition of Wausau Paper is an excellent strategic fit and strengthens our presence in North America," SCA Chief Executive Magnus Groth said. "The Wausau Paper product portfolio complements SCA's offerings in North America and gives us access to premium tissue in that region."

Annual synergies of $40 million are expected, with restructuring costs seen at $50 million.

Closure of the deal is expected in the first quarter of 2016.

 

Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @WSJNordics

 

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(END) Dow Jones Newswires

October 13, 2015 02:56 ET (06:56 GMT)

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