KRUGER SET TO BUY SCOTT PAPER
By Adnews Staff
British-based Kruger Inc. has made a bid for control of Scott Paper Ltd. of Mississauga. Scott's current majority owner, Kimberly-Clark Corp. of Dallas, Texas is unloading the company because Canada's Bureau of Competition Policy felt Kimberly-Clark controlled too much of the market. Kimberly-Clark got control of Scott Paper Ltd. when it bought the company's U.S. parent Scott Paper Co. in 1995. The $351 million deal would give Kruger control of such Scott brands as Purex, Scotties and White Swan. However, three brands - ScotTowels, Cottonelle and Viva - are being transferred to Kruger on a temporary basis only. Kruger will market the three brands for 10 years, after which the marketing rights will revert back to Kimberly-Clark. Sheldon Bell, Scott Paper's corporate finance vice-president and CFO, told Adnews he didn't expect there would be any major changes to the company. Kruger has stated Scott would continue to operate as an autonomous organization. Kruger is the sixth-largest newsprint producer in North America. The company also has tissue operations in Britain and South America. Kimberly-Clark manufactures a variety of tissue and paper products including well-known brands Kleenex and Huggies.