SCA offers to purchase Georgia-Pacific business unit

SCA has made an offer to purchase the European tissue business unit of US-based manufacturing firm Georgia-Pacific.

The bid has been valued at 1.32 billion euros (1.13 billion pounds) and is now being considered by Georgia-Pacific, with customary consultations with works councils to be held where appropriate.

Sales from the business in 2010 came to around 1.25 billion euros, with the business offering a well-established presence in Europe, strong recognition of its Lotus brand and a workforce of around 5,000 employees.

SCA believes that annual synergies of 125 million euros could be achieved via this takeover, coming into full effect within three years of the deal closing.

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

Last month, the company published its interim financial report for the year to date, reporting a net sales growth of six percent for the nine months.