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SCA sells British subsidiary to BSW Timber Group

10.12.2020 − 

On 1 December, Svenska Cellulosa Aktiebolaget (SCA) sold its value-adding and trading activities operated through SCA Wood Supply UK to BSW Timber Group. The sale covers the headquarters and the distribution centre in Stoke-on-Trent, the planing works and distribution centre in Welshpool, the production facilities, and the distribution centre in Melton as well as the distribution centre in Cumbernauld. The purchase price is given as SEK150m on a debt-free basis. SCA will be retaining the storage terminal at King George dock in Hull and will be used for deliveries to the UK and goods handling for the UK Industrial Solutions subdivision. In the course of the sale, some 280 SCA employees will be switching to BSW. According to information from SCA, an annual volume of around 400,000 m³ of sawnwood, planed products, and value-added timber products is handled by the facilities that have now been sold.

The release published on 1 December states that the sale reduces SCA’s annual sales revenue by approximately SEK1.4bn and the group’s EBITDA by roughly SEK25m. The transaction reduces the company’s net indebtedness by SEK150m. The acquisition of the SCA facilities will boost BSW Timber’s annual sales revenue to over £500men. By taking over SCA Wood Supply UK, BSW Timber is continuing its course of expansion. The group announced on 12 November its acquisition of Dick Brothers Forestry from Faro Capital.

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