SCOTT PAPER COMPANY SELLS SHARES IN JAPANESE BUSINESS
SCOTT PAPER COMPANY SELLS SHARES IN JAPANESE BUSINESS PHILADELPHIA, Pa., Nov. 21 /PRNewswire/ -- Scott Paper Company
(NYSE: SPP) today announced the sale of its shares in Sanyo Scott Company Ltd. to Sanyo-Kokusaku Pulp Company, Ltd., its joint venture partner, for approximately $63 million.
Scott owned 50 percent of Sanyo Scott, which manufactures and markets consumer and some commercial sanitary tissue products in Japan. The company will utilize the net proceeds from the sale primarily to reduce debt. The sale also includes a new agreement for Sanyo Scott's use of Scott consumer trademarks on consumer brands in the Japanese market. Scott said it will continue to maintain its presence in Japan through Scott Japan Ltd., a wholly owned subsidiary of Scott, which markets its personal care and cleaning products in the commercial market, one of Scott's core businesses. According to Philip E. Lippincott, Scott chairman and chief executive officer, the company's shares in the joint venture were sold because the business did not meet Scott's strategic criteria. "This divestment continues our strategy of shedding those businesses and assets not essential to our key businesses," said Lippincott. "Consistent with this strategy we sold 194,000 acres of timberlands in Washington state in 1989 and Scott's Brazilian affiliate last year, and as announced in January, we plan to divest our specialty paper, bulk nonwovens and most of our foodservice businesses. By divesting these assets and businesses and by redoubling our efforts at reducing working capital, controlling capital spending and cost reduction, we can concentrate on our high priority strategies." /delval/ -0- 11/21/91 /CONTACT: Michael N. Kilpatric of Scott Paper, 215-522-6232, or after 6 p.m., 215-431-9667/ (SPP) CO: Scott Paper Company; Sanyo Scott Company Ltd.; Sanyo-Kokusaku Pulp Company, Ltd.; Scott Japan Ltd. ST: Pennsylvania IN: PAP SU: JVN CC -- PH001 -- 5672 11/21/91 02:00 EST
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|Date:||Nov 21, 1991|
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