Complementary acquisition of US packaging company

  • Regulatory press release

Complementary acquisition of US packaging company SCA has acquired, through its subsidiary Tuscarora, parts of the US protective-packaging company Marko Foam Products, Inc. for USD 4.0 M, about SEK 41 M, on a debt-free basis. The acquisition corresponds to 5.0 times operating surplus (EBITDA), based on earnings in the most recent 12 months. It is estimated that the acquisition will result in a CVA index of approximately 2.2, thereby exceeding SCA's weighted average cost of capital (WACC) by at least 120%. SCA is acquiring Marko's plant for the production of packaging solutions based on expanded polystyrene (EPS) in Wilsonville, Oregon. SCA will also be taking over Marko's EPS business, but not the production plants, in Colorado. The EPS business will be integrated with SCA's existing plants in Colorado Springs. The acquired operations supply packaging solutions to companies that primarily manufacture products for the home electronics and health care sectors. The annual sales of the acquired operations total approximately USD 7.0 M. Stockholm, 13 December 2001 SVENSKA CELLULOSA AKTIEBOLAGET SCA (publ) Communications and Investor Relations For further information, please contact: Peter Nyquist, Vice President, Communications and Investor Relations, phone +46 70 575 2906 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/12/13/20011213BIT01060/bit0002.doc http://www.waymaker.net/bitonline/2001/12/13/20011213BIT01060/bit0002.pdf