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Swedish SCA to buy U.S. Wausau Paper for $513 million

Staff writer |
SCA, Swedish paper and hygiene products company, agreed to buy U.S. tissue maker Wausau Paper for $513 million in cash.

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SCA expects the acquisition of the maker of tissues, soap and dispensing systems for non-domestic settings such as offices to generate annual cost savings of around $40 million after three years. Restructuring costs would total around $50 million, it said in a statement.

The boards of both companies approved the deal, whose price tag represents a premium of 40.6 percent to Wausau Paper's closing price on Monday.

It expects to close the deal, which is subject to Wausau Paper shareholder and regulatory approvals, in the first quarter of 2016.

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