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.