SCA is to acquire North American away-from-home tissue company Wausau Paper for US$513 million. In doing so SCA will expand its US presence as well as tap Wausau’s technology.
One of North America’s largest away-from-home tissue companies, Wausau manufactures and markets towel and tissue products along with soap and dispensing systems through its Artisan, DublNature, DublSoft and EcoSoft® brands.
‘Wausau Paper’s advanced tissue technology with manufacturing flexibility enables it to produce its towels and tissue entirely from recycled paper, which will further contribute to SCA’s efforts to create environmentally friendly products and extend its sustainability commitment.
‘The combined operations will provide customers with access to a comprehensive portfolio of food service offerings and premium tissue and washroom products,’ said the official 13 October statement.
“SCA is the world leading supplier of away-from-home tissue with the global brand Tork. The acquisition of Wausau Paper is an excellent strategic fit and strengthens our presence in North America.
“The Wausau Paper product portfolio complements SCA’s offerings in North America and gives us access to premium tissue in that region. We expect the acquisition to generate benefits for SCA and our customers,” noted Magnus Groth, president and CEO, SCA.
Wausau Paper’s reported sales for the first half year 2015 amounted to US$175 million, EBITDA of US$32 million and operating profit of US$11 million.
“This acquisition will benefit customers by providing access to the superior sales, service, innovation and logistics that the combined business can provide.
“It will expand SCA’s premium tissue and washroom assortment and give Wausau Paper customers the ability to purchase products from SCA’s industry-leading food service offerings – in essence offering customers a ‘one-stop shop’ for all professional hygiene needs. Furthermore, we look forward to welcoming Wausau Paper’s employees to the SCA family,” stated Don Lewis, president, SCA Americas.