SCA Agrees To Acquire Wausau Paper For $513 Mln

(RTTNews) - SCA Group (SVCBY.PK), a hygiene and forest products company, and Wausau Paper Corp. (WPP), a North American Away-from-Home tissue company, Tuesday said SCA would acquire Wausau for $10.25 per share or $513 million in cash.

The boards of directors of both companies have unanimously approved a definitive merger agreement.

The offer represents a premium of 40.6 percent to Wausau's closing price on October 12. SCA has funding available for the deal and closing is expected to take place during the first quarter of 2016.

Wausau's reported sales for the first half year 2015 amounted to $175 million. Its EBITDA for the period was $32 million and operating profit totaled $11 million.

The acquisition is expected to generate annual synergies of $40 million with full effect expected three years after closing.

Synergies are expected in sourcing, production, logistics, reduced imports, increased volumes of premium products and reduced SG&A costs. The restructuring costs are expected to be around $50 million.