STOCKHOLM, Sweden, March 21, 2002 (PRIMEZONE) -- The European Commission has approved SCA's acquisition of the Italian tissue producer CartoInvest. SCA will, which has been communicated in a press release from SCA dated February 19, 2002, pay EUR 301 M for the shares in CartoInvest, and assume debt of EUR 171 M.
The preliminary acquisition analysis indicates that goodwill, after provision for restructuring costs, will amount to about EUR 220 M. The restructuring costs, which are estimated at EUR 25 M, pertain to nonrecurring expenses for integrating CartoInvest's operations with SCA's. Measures comprise combining sales organizations, integration of production and distribution, coordination of administrative functions and similar actions. SCA will consolidate CartoInvest's operations as of April 1, 2002.
With sales of approximately EUR 440 M, CartoInvest is today the fourth largest consumer tissue producer in Europe. As a result of the acquisition, SCA confirms its position as the leading European producer of tissue. SCA increases its European value share of the retailers' brands market (private label) from 24 percent to about 32 percent and in the total consumer tissue market from 20 percent to about 25 percent.
In Italy, SCA attains as a result of the acquisition a number three position, with a 10 percent market share for consumer tissue. The combination with the consumer brands SCA already sells in the country -- baby diapers, feminine hygiene products and light incontinence products -- provides SCA with a complete portfolio and a platform for continued growth.
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