SCA to Buy P&G European Tissue Unit

Monday, 12 Mar 2007 | 5:13 AM ET

Swedish hygiene and paper product maker SCA said on Monday it had signed a deal to buy all of Procter & Gamble's European tissue operations for 512 million euros ($672 million) in cash.

SCA said the acquisition will give it the Tempo brand, the market leader in paper handkerchiefs in Western Europe and Hong Kong. It will also get an exclusive license in Europe for the Bounty paper towel and Charmin toilet tissue brands.

SCA said savings from the purchase of a business with annual net sales of nearly 500 million euros "are expected to be considerable."

Last month, SCA said it would invest 1 billion Swedish crowns ($141.1 million) in a new tissue paper machine at its Barton, Alabama, plant in the United States.

SCA shares rose 2.12% on the Stockholm bourse.

"This acquisition will help us to take important steps toward improving our customer offer and profitability in our European consumer tissue operation," SCA president and chief executive Jan Astrom said in a statement.

Procter & Gamble's five European plants, which together employ about 1,100 people, are included in the acquisition.

The plants are in Manchester in England, Witzenhausen and Neuss in Germany, Orleans in France and Lucca in Italy.

  Price   Change %Change


Contact U.S. News


    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • CNBC's David Faber and Carl Icahn, chairman, Icahn Enterprises, discuss corporate boards, a dysfunctional system, his impact as an activist investor and why what he does is important, as well as the use of poison pills to fend off activists. He also finds himself in the unusual position of defending Bill Ackman's recent efforts to partner with Valeant and acquire Allergan.

  • Discussing new technology in the Permian, growing market in North America, and higher earnings, with Dave Lesar, Halliburton chairman, president and CEO.

  • Paul Raines, GameStop CEO, discusses how its leadership in digital sales, market share, and ability to drive loyalty with rewards propels consumers to stay with the gaming store.