Complementary Acquisition of US Packaging Company.Business Editors STOCKHOLM, Sweden--(BUSINESS WIRE)--Dec. 13, 2001 SCA has acquired, through its subsidiary Tuscarora, parts of the US protective-packaging company Marko Foam Products, Inc. for USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 4.0 M, about SEK SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 41 M, on a debt-free basis. The acquisition corresponds to 5.0 times operating surplus (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ), 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 Weighted average cost of capital (WACC) Expected return on a portfolio of all a firm's securities. Used as a hurdle rate for capital investment. Often the weighted average of the cost of equity and the cost of debt The weights are determined by the relative proportions of equity (WACC WACC See: Weighted average cost of capital ) 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. |
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