Boise Cascade to Sell Paper, Packaging and Newsprint Assets
Press release from the issuing company
September 13, 2007 -- BOISE, Idaho – Boise Cascade, L.L.C. has entered into a Purchase and Sale Agreement with Aldabra 2 Acquisition Corp. for the sale of Boise Cascade's Paper, Packaging & Newsprint segments for cash and shares of Aldabra common stock equal to approximately $1.625 billion. As part of the transaction, Aldabra intends to change its name to Boise Paper Company and will apply for listing on either the New York Stock Exchange or NASDAQ. Boise Cascade, a privately held company, will maintain 100% ownership of its Wood Products and Building Materials Distributions segments following the transaction. Both companies will be headquartered in Boise, Idaho.
Tom Stephens, Chairman and CEO of Boise Cascade, said, "We're excited that Aldabra is buying our Paper, Packaging & Newsprint businesses. Our entire organization in these operations has worked hard to transform their businesses, and this is a huge vote of confidence in what the team has built and the future opportunities before them." Stephens added, "This is also good news for the people in our remaining businesses, Wood and Building Materials Distribution, who have delivered strong results over the past three years. We will use a portion of the cash received from the transaction to pay down debt. As a well-financed and highly focused company, Wood and BMD will not only be in an excellent position to operate successfully in the challenged housing market but will also have the means to grow.
As two separate companies, the businesses will be able to focus sharply on their respective core competencies to enhance performance and returns to investors, customers, and employees."
Alexander Toeldte will become CEO of Boise Paper Company. He is currently Boise Cascade's executive vice president, responsible for its Paper, Packaging & Newsprint businesses. Prior to joining Boise Cascade in 2005, Toeldte was CEO of two public companies in New Zealand (Fletcher Challenge Paper and Fletcher Challenge Building). Toeldte said, "This transaction recognizes the progress we've made during the three years we were a private company. We reinvigorated our culture by taking out layers of overhead, streamlining management processes, and changing our relationship with employees to one of full involvement in running the business. We have also made key strategic investments, including the acquisition of Central Texas Corrugated, which increased the integration of our container business, and the conversion of the largest paper machine at our mill in Wallula, Washington, which significantly improves our competitive position for the future."
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