Regulators OK SCA Purchase of P&G's European Tissue Operations
Sept. 5, 2007 - The European Commission today approved SCA's acquisition of Procter & Gamble's European tissue operations.
The purchase price was EUR 512 million, which will be paid in cash in two stages.
According to SCA, a first payment of EUR 347 million is slated for October 1, the date the company expects to complete the deal. A second payment of EUR 165 million will be paid in March 2008 following agreed upon technical adjustments at certain plants.
Lennart Persson, acting president and CEO of SCA, said, "Today's decision by the European Commission means that we can start the integration work. At a later date, we plan to provide additional financial information, decisions on possible restructuring, and the synergy effects of the acquisition, which will primarily affect brands and markets."
The approval is conditional on SCA divesting its present operations within handkerchiefs under the Softis brand in Germany and Austria and, if the purchaser so requires, related production capacity and equipment. In conjunction with a sale of Softis, a licence will be granted to the purchaser to use SCA's Zewa brand (for handkerchiefs) for a limited period.
See related story:
- P&G to sell Western Europe tissue business to SCA (3/12)