Japan Pulp & Paper (U.S.A.) Acquires 51% of New York-Based Gould Paper

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Gould Paper Corp., New York, N.Y., this past week became a 51% subsidiary of Japan Pulp & Paper (U.S.A.) Corp. (JPP), a wholly-owned subsidiary of JPP (Tokyo). Gould CEO and chairman Harry E. Gould stated that the sale of the company had been his objective within the next five years and, fortunately, the right opportunity arrived sooner rather than later. The purchase represents an Enterprise Value for Gould Paper in excess of $100 million. JPP plans to purchase the remaining 49% of equity in April 2015.

From the perspective of JPP, the acquisition represents a major opportunity to implement its long-term business investment strategy, which has been designated "Innovation JPP 2020." This strategy is designed to identify increased investment in offshore management resources and the expansion of overseas business activities as key corporate goals to be achieved by the year 2020. JPP has already established 21 strategic locations throughout China and the greater Asian region, which includes the wholesale trade of paper and paperboard products, the sale of new materials used in the production of recycled paper products, and the manufacture and production of household paper products. In addition, JPP sells printing and communication papers as well as specialty papers through their offices in Los Angeles, Atlanta, Mexico City, Düsseldorf, Moscow, and Sydney, Australia.

Gould Paper, established in 1924, is one of the quartet of largest paper merchants in the U.S., with a vast global reach. Gould has distribution facilities in Edison, N.J., Miami, Fla., and Dallas, Texas, as well as an additional 33 outside warehouses across the U.S. It also maintains 16 sales offices throughout the country in addition to sales offices in the U.K., Helsinki, Paris, Auckland, Glasgow, Moscow, Shanghai, Manila, and Hong Kong. Gould also has representative offices in Dubai, Chennai (India), Istanbul, Taipei, Melbourne, Sao Paulo, Lima, Buenos Aires, Santiago, Costa Rica, and Panama.

Gould further stated that there is almost no overlap with JPP with respect to suppliers and customers. This will allow the two companies to "cross-pollinate" supply sources and take advantage of the growing "global" mind-set of the major international corporations. In short, the combination brings an even higher "value-add" quotient to both companies' supplier and customer base.

All Gould personnel and managers will continue in their existing positions. In addition, Carl Matthews (Gould's CFO), and several other key managers will continue in their respective positions for a minimum of five years. Gould added that with JPP's capital base, Gould's expansion through acquisition will accelerate in both the foreign and North American markets.