SCA’s offer to acquire Georgia-Pacific tissue operations approved

SCA's offer to acquire the European tissue operations of Georgia-Pacific has been accepted and the process will now continue to the finalising of the agreement.

Following consultations with the appropriate work councils, Georgia-Pacific gave the green light to the move and a sales and purchase agreement has now been signed by both parties.

The approval of relevant competition authorities must now be sought before SCA can close the deal, while further local consultation processes must also be carried out.

SCA announced the binding offer to acquire the tissue operations for 1.32 billion euros (1.1 billion pounds) on November 10th 2011. The operations achieved sales amounting to 1.25 billion euros in 2010.

Some 60 percent of sales come from consumer tissue accounts, while approximately 30 percent are from away-from-home tissue accounts.

Jan Johansson, president and chief executive officer of SCA, said: "The deal is a strategic fit and will strengthen our product offering and geographic reach in Europe."