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Sweden's SCA offers Tea Party-backers billions for tissue firm

Published: 10 Nov 2011 14:02 GMT+01:00
Updated: 10 Nov 2011 14:02 GMT+01:00

Swedish paper firm SCA said Thursday that it had placed a 12.6 billion kronor ($1.9 billion) bid to purchase the European tissue wing of US pulp and paper company Georgia-Pacific, a firm owned by Tea Party movement financiers David and Charles Koch.

"SCA has delivered a biding offer to acquire Georgia-Pacific's European tissue operations," the Swedish company said in a statement.

"The deal is a strategic fit and will strengthen our product offering and geographic reach in Europe," SCA president and chief executive Jan Johansson said, adding "it also leads to substantial synergies."

Georgia-Pacific, one of the world's biggest makers of tissue, pulp and paper, last year saw its European tissue business pull in sales of €1.25 billion euros.

"The annual synergies are estimated at €125 million, with full effect in three years after closing," SCA said, adding that related costs were expected to tick in at 130 million euros.

"Already in year one, the transaction is estimated to contribute to an increase of earnings per share and cash flow. With fully realised synergies, earnings per share are expected to increase with approximately 1.70 kronor," it said.

SCA said it had the needed credit facilities to complete the deal to buy the Georgia-Pacific unit, which among other things makes the widely-known Lotus brand of tissue paper and counts some 5,000 employees and 15 production sites in seven countries.

The Swedish company did not say when it expected the deal to close, pointing out that Georgia-Pacific's acceptance of the offer would depend on the outcome of discussions with employee representatives.

If approved by the American company, the deal would also still need a green light from competition authorities, SCA said.

Following the news, SCA saw its share price rise 1.2 percent in early morning trading on a Stockholm stock exchange down 1.14 percent.

AFP/The Local (news@thelocal.se)

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Your comments about this article

17:16 November 10, 2011 by cogito
The headline and introduction contain "facts" (???) which are not supported--or even mentioned--in the article.

Who is the "journalist" responsible for the article. There is no byline.

Cowardice? Amateurism?

Whatever. TL loses credibility.
06:43 November 11, 2011 by grey haired gent
Do you have real proof of the fact that the Koch bros are responsible for starting and supporting the "Tea Party" or are you just repeating the "Liberal" talking points of the progressive wing of the democratic party.

Seems the liberals are afraid of the Tea Party. Guess theyr'e a threat to socialism . By the way ,hows socialism doing in Europe. You know , Portugal, Italy,Spain, Greece and so on. I mean all they had to do was ask any Russian about Marx and socialism.They could tell you how good it was
07:54 November 11, 2011 by shahislam
Even though not successful this time around it was a good research.

Not to be unheathily worried because all is being done by the creations and the creations have the defending power too. Bringing all the too rich guys in oil or energy business under "New tax rules (to be passed soon)" can easily solve these kind of small issues.

We the human, with a good man in the Western leadership, are now capable of removing even a menmaid city in a better location. We have millions of employable welfare recipients, skilled labours sitting idle.

If not today, tomorrow we won't have no choice but to get used to inevitable changes of new era as follows:

Whenever, current "Tax rules & Laws" and the professional Capitalist formulas of modern Economy are failed, that gives a signal to get back again to basic accounting of Socialism for redistribution of wealth for a limited time.

Money is a token, fruitful-positively usable to exchange mainly labours and not to sit as numbers in the banking system as fortunes of businessmen. Men-made new rules such as '$ One million maximun per person income is allowed' and rest will go to the global public funds such as UN's and private and public credits or debts will be wiped off, just like recent Gaddafi's etc. are capable of totally changing present bad financial situation in the West including our USA or tomorrow's North-America.

WE still can print it in volumes, pay off some of the debts, distribute as "must be spent vouchers and collect it back as revenues" and handle the situation by inviting foreign (until our available citizens join) labours @ minimum wages, -like Saudi-Arabia or Libya, to make and produce here everything we need everyday, because we are still blessed and we have free lands and all kind of minerals here too.

There is another preventive solution to be applied against worst kind of world situation of economy. It will be so easy that presently certified economists cannot even dream about.
12:31 November 11, 2011 by Lavaux
I don't see the relevance of the Tea Party or Koch Bros. to SCA's offer since neither are the offeree. If I were a leftist, however, the mere mention of Tea Party or Koch Bros. would transport me to paroxysms of hateful incoherence. Lucky for me I don't suffer from such mental defects.

I get a big kick watching the media push lefty buttons for circulation. The effect in operation was first demonstrated by Pavlov and his dog. "Koch Bros.," ... *drool* "Tea Party," ... *slobber* "Corporate jets," ... *growl* "Tax the rich," ... *wag tail* "The Wealth Gap," ... *bark* Etc.
02:08 November 16, 2011 by Marc the Texan
Why should this even be an issue? I'm not even close to being a tea partier, but how is it any different than buying a company from a Democrat? The tone of this article implies that the Tea Party is some dastardly organization. As far as I'm aware, the only issues relevant to the Tea Party is to cut government spending and taxes.
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