Chad Brown, CFA
Fri, Nov. 18, 11:36 AM
- WestRock (WRK +0.8%) plans to unload its unit that manufactures soap dispensers and perfume sprayers, sources tell Reuters.
- Bidders include Bain, Onex, Advent, Clayton Dublier & Rice and British firm RPC.
- A deal could off for as much as $1B (10X EBITDA). An overlapping sale by PE-owned Albea is also grabbing the attention of some of the bidders.
Oct. 1, 2015, 6:24 PM
- WestRock (WRK +1.1%) says it's completed a $288.5M acquisition of paper firm SP Fiber Holdings.
- The move means it's taking on mills in Georgia and Oregon that make recycled containerboard and kraft and bag paper for consumer use. WestRock expects the new mills will balance the fiber mix of its mill system.
- The deal should be accretive to WestRock earnings in the second half of fiscal 2016.
- Shares of WestRock are flat in after-hours action.
Aug. 11, 2015, 9:55 AM
- WestRock (WRK -0.7%) agrees to acquire recycled containerboard and kraft and bag paper producer SP Fiber Holdings, including the company's 48% interest in Green Power Solutions of Georgia, for $288.5M.
- WRK says SP Fiber's mills in Dublin, Ga., and Newberg, Ore., will balance the fiber mix of its mill system, and the addition of kraft and bag paper will diversify its product offering.
- WRK expects the transaction to generate significant synergies and be accretive to earnings in H2 2016.
Jan. 26, 2015, 9:16 AM
- Shares of Rock-Tenn (NYSE:RKT) and MeadWestvaco (NYSE:MWV) are higher in early trading following an announcement on the merger between the two paper product companies
- The deal is the largest in the paper industry since 2005.
- MeadWestvaco has been under pressure from Starboard Value over its operating structure and strategy. It will be interesting to see if Starboard with its +6% stake will weigh in on the transaction.
- Starboard letter to MeadWestvaco from last summer (.pdf)
- Previously: Rock Tenn beats by $0.06, beats on revenue
- Previously: MeadWestvaco beats by $0.01, beats on revenue
- Previously: Rock-Tenn and MeadWestvaco to merge
- RKT +5.6% premarket to $66.50 and MWV +13.9% to $51.30.
Jan. 26, 2015, 7:07 AM
- Rock-Tenn (NYSE:RKT) and MeadWestvaco (NYSE:MWV) announce they will merge in a transaction with an equity value of close to $16B.
- The transaction gives MeadWestvaco shareholders 0.78 shares in the newly-created company, while RockTenn shareholders can land one share in the new company or a cash equivalent.
- A targeted ownership ratio sees MWV shareholders hold 50.1% of the new company to help facilitate tax advantages connected to the spinoff of MWV's specialty chemicals business.
- The deal is expected to create $300M in annual synergies and close in Q2.
Oct. 28, 2013, 5:44 PM
- Plum Creek Timber (PCL) will acquire 501K acres of timberlands in Alabama, Georgia, South Carolina, Virgina, and West Virginia for $869M and rural and development-quality lands near Charleston, South Carolina, for $152M from MeadWeastvaco (MWV). The deal also includes $65M for subsurface rights and wind-power assets on the timberlands.
- In conjunction, the 2 companies formed a joint venture to develop the South Carolina lands.
- The majority of the proceeds will be distributed to MeadWestvaco shareholders.
- Plum Creek announced it intends to finance the acquisition by offering 14.1M shares (2.115M overallotment) in a follow-on. The sale would be good for proceeds of $700M at today's close.
- MeadWestvaco PR, Plum Creek Timber PR
Nov. 17, 2011, 9:04 AM
ACCO Brands (ABD) will merge with MeadWestvaco's (MWV) consumer and office products business in a transaction valued at ~$860M. MWV shareholders will own 50.5% of the combined company. ACCO says the combination will increase its annual revenues by more than 50% and should immediately be accretive to its EPS. ABD +22.1%, MWV +1.2% premarket.| Nov. 17, 2011, 9:04 AM
Jun. 7, 2011, 2:52 PM
International Paper (IP +1.1%) and Temple-Inland (TIN +42.3%) are in focus after IP's $30.60/share bid was rejected despite being a 46% premium to Monday's closing price. Other packaging and paper stocks rally on calls from bullish analysts that the industry is heading for consolidation: PKG +6.9%, WY +6.2%, BZ +5.6%, KS +4.3%, RKT +3.1%.| Jun. 7, 2011, 2:52 PM