Sweden’s SCA to buy Georgia-Pacific’s European tissue operations for $1.8 bn

Swedish hygiene and paper products maker Svenska Cellulosa AB (SCA) has launched a €1.32-billion ($1.8 billion) bid for US-based Georgia-Pacific's European tissue operations in order to expand its consumer offerings portfolio.

Atlanta-based Georgia-Pacific has a well-established presence in Europe in both away-from-home and consumer tissue products. Their products in both segments are in particular marketed with the well-known Lotus brand.

Consumer tissue accounts for some 60 per cent of total sales and away-from-home tissue accounts for approximately 30 per cent of sales. Personal care products such as cotton pads and facial cleansing wipes account for some 5 per cent.

In the consumer tissue business, close to 70 per cent of sales are branded products and the remainder are private label products.

Georgia-Pacific's European tissue operations have approximately 5,000 employees and 15 production sites in seven countries.

Georgia-Pacific's European tissue operations have EBIT margins that are on a similar level as for SCA's tissue business. SCA estimates to achieve synergies of €125 million, with full effect in three years after closing.