SCA has completed the sale of its Swedish packaging business SCA Packaging to the UK-based recycled packaging manufacturer DS Smith, in a deal worth €1.7bn.
SCA president and CEO Jan Johansson said earlier that the company decided to sell its business to enable increased growth in the hygiene business.
"Over the years we have developed our packaging business and we are divesting a competitive operation to an industrial buyer who can continue to develop it," Johansson added.
Two kraftliner mills have not been included in the transaction.
In 2010, the packaging operations, excluding the two kraftliner mills, registered net sales of about SEK24.2bn (€2.5bn) and an operating profit of about SEK1.1bn (€117m).
The Swedish company will make about SEK4bn (€457m) write-down of goodwill with regard to the transaction. According to the company, the divested operations have about 12,000 employees.
In May 2012, DS Smith secured approval from the European Commission competition authority for its acquisition of SCA Packaging.
SCA develops and produces personal care products, tissue, publication papers and solid-wood products and has brands including the global brands TENA and Tork.
Image: According to SCA president and CEO Jan Johansson the sale of its business will enable increased growth in the company's hygiene business. Photo: SCA.