Sweden's SCA Buys Wausau Paper Corp for $513 Million
October 13 2015 - 03:11AM
Dow Jones News
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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