Wausau's Columbia Avenue plant in Middletown produces giant towel and tissue parent rolls, which are later converted into smaller ones for individual use or other purposes. As of a year ago, Wausau Paper in Middletown employed about 180 workers, according to the company.
“The Wausau Paper product portfolio complements SCA’s offerings in North America and gives us access to premium tissue in that region. We expect the acquisition to generate benefits for SCA and our customers,” said Magnus Groth, president and chief executive officer of SCA, in a written statement.
SCA’s deal was determined to be in the best interests of the U.S. company and shareholders, said Michael Burandt, chairman and CEO of Wausau Paper, in a written statement.
The transaction is expected to close by the end of March next year.
“Middletown is an important element of Wausau Paper’s manufacturing system,” said Perry Grueber, spokesman for Wausau, in an email Tuesday. “The quality of the workforce and the products manufactured there are important elements in Wausau’s growing business and recently improved profitability. Both of these elements underlay why Wausau Paper as a company was attractive to SCA, leading to this transaction.”
Wausau has made a series of investments in the Middletown mill over recent years. Last year, approximately $1.5 million was spent to update equipment and to clean and replace parts, Grueber told Journal-News at the time. Also in 2009, Wausau invested more than $30 million to rebuild a towel machine in Middletown. The project was completed in early 2010.
“As indicated in the press release, the two companies appear to complement each other, and there appears to be a benefit from the combined capabilities of the two organizations,” said Middletown Economic Development Director Denise Hamet in an email.
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