Boise Cascade sheds pack, paper and newsprint arms for £800m

Boise Cascade is selling its paper, packaging and newsprint divisions to acquisitions specialist Aldabra 2 for £800m ($1.6bn).

The Idaho-based wood products and building materials manufacturer said the move would allow the two separate companies to "focus sharply" on their core markets.

Alexander Toeldte, who is currently responsible for the divisions within Boise Cascade, will become chief executive of the new entity, to be called Boise Paper Company (BPC). He said the deal "recognised the progress made" in the past three years.

In 2006, the company bought sheet feeder business Central Texas Corrugated.

Boise Cascade chairman and chief executive Tom Stephens said: "This is a huge vote of confidence in what the team has built and the future opportunities before [both companies]."

As part of the transaction, New York-based Aldabra 2 will apply to float BPC on the stock exchange, but the headquarters will remain in Boise, Idaho.

Boise Cascade reported a 37% drop in annual pre-tax profit to £37m in 2006.
Source: packagingnews