International Paper Completes Acquisition of Temple-Inland
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International Paper Co. (IP), Memphis, Tenn., USA, has completed its acquisition of Temple-Inland Inc. (T-I) , formerly headquartered in Austin, Texas, through the merger of its wholly-owned subsidiary Metal Acquisition Inc. with and into T-I. Temple-Inland is now a wholly owned subsidiary of IP.
Under terms of the transaction, each issued and outstanding share of T-I common stock has been converted into the right to receive $32.00 in cash, without interest thereon, and less any applicable withholding taxes. Including the assumption of approximately $700 million in T-I net debt, the total transaction value is approximately $4.5 billion.
As a result of the acquisition, T-I's common stock ceased trading on the New York Stock Exchange this past Monday (February 13).
IP Chairman and CEO John Faraci said that "we are very pleased to have completed this compelling transaction. The combination of International Paper and Temple-Inland strengthens our North American packaging business and enhances our ability to generate cash flow while maintaining our strong balance sheet. We look forward to working with the employees of Temple-Inland as we successfully integrate our businesses and create an even stronger company with substantial benefits for our customers, employees, and shareholders."
IP is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. The company employs some 61,000 people in more than 24 countries and serves customers worldwide. Its 2011 net sales totaled $26 billion.
T-I is focused on corrugated packaging and building products. The fully integrated corrugated packaging operation consists of seven mills and 59 converting facilities. The building products operation manufactures a diverse line of building products for new home construction, commercial, and repair and remodeling markets.
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