P&G to sell Western Europe tissue business to SCA
March 12, 2007 - The Procter & Gamble Company today said that it will sell its Western European tissue/towel business to SCA.
The deal involves the sale of manufacturing assets, P&G's Tempo brand in Europe and Hong Kong, and the licensing of Charmin & Bounty trademarks in Europe, P&G said.
Closing of the deal depends regulatory approval processes in Europe, P&G added
"This is a strategic choice to focus on continued growth of P&G's tissue, towel and facial tissue businesses in the U.S., Canada, and Mexico led by billion dollar brands Bounty and Charmin," said David Taylor, president of P&G's global tissue/towel business.
P&G's Charmin, Bounty and Puffs brands in the U.S., Canada, and Mexico are not impacted by the SCA transaction in Europe, the company said.
P&G expects that employees at five manufacturing plants in Europe will become employees of SCA at the deal closing date. P&G's plants are located in Manchester, England; Neuss and Witzenhausen, Germany; Lucca, Italy; and Orleans, France.
The divestiture represents about 1% of P&G's total sales.
SOURCE: The Procter & Gamble Company