SCA recently signed an agreement to sell its Asian packaging operation and puts focus on hygiene growth in Asia.
The buyer is International Paper and the purchase consideration amounts to USD 200m. In 2009, the Asian operation reported sales of approximately USD 250m and had approximately 4,500 employees at 15 plants in China, Singapore, Malaysia and Indonesia.
"We divest our packaging business in Asia in line with our strategy, to focus on our hygiene products there", says Jan Johansson, President and CEO of SCA.
The purchase consideration will be settled in cash. The transaction will result in neither capital gain nor capital loss.
The transaction is expected to be finalised during the second quarter of 2010, subject to approval from the relevant authorities.
