STOCKHOLM, Sweden, March 18, 2003 (PRIMEZONE) -- SCA (Other OTC:SVCBF) is acquiring the French development company Segas. The company is SCA's most important supplier of dispensers used in the European and North American AFH (Away-From-Home) markets (tissue for bulk consumers). The seller is Paredes, the French distribution company that is simultaneously acquiring SCA's distribution company Apura in the hygiene paper products segment in France.
Strategically, with the acquisition of Segas, SCA is gaining control over the production, development and patent rights pertaining to a competitive dispenser system for so-called hard-rolled tissue paper products. However, the seller will continue to be responsible for the distribution and sale of dispenser systems in France and, during a transitional period, in Italy. Concurrently, as is the case in other European markets, SCA will refrain from conducting its own distribution operations in the hygiene segment. Consequently, SCA can freely choose different distribution and sales channels and avoid competition with its own customers.
The acquired operation has annual sales of approximately EUR 10 M and the divested operation has sales of about EUR 60 M. The margin difference between the respective operations and the net purchase amount to SCA of EUR 7.2 M means that the transaction has a neutral effect on the Group's net earnings.
The transaction requires approval by relevant competition authorities regarding Paredes' acquisition of Apura.
SCA
Jan Astrom, President and CEO
Phone: +46 70 586 07 01
Peter Nyquist, Senior Vice President Communications and
Investor Relations
Phone: +46 70 575 29 06
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