Temple-Inland Stockholders Approve International Paper Merger
December 14, 2011 | 1:01 pm CST
Regulatory Review Extended for IP, Temple Inland Merger

Temple-Inland Stockholders Approve International Paper MergerAUSTIN, TX — International Paper will soon be back in the composite panel business following the overwhelming approval of a merger agreement by Temple-Inland stockholders. According to Temple-Inland, on Dec. 7, 86,908,118 shares of its common stock voted in favor of the merger; this represents over 98 percent of the shares from the composite panel and packaging manufacturer.

In September, IP and Temple-Inland agreed on an offer of $32.00 per share in cash, plus the assumption of $600 million in Temple-Inland's year-end debt. The total transaction value is approximately $4.3 billion. The completion of the merger now is subject to regulatory approval and customary closing conditions.

According to the companies, the merger is expected to yield synergies of approximately $300 million annually within 24 months of closing, derived primarily from the areas of operations, freight, logistics, selling expense and overhead. Temple-Inland manufactures composite wood panels and building products at 16 U.S. facilities. The company also has seven containerboard mills and 63 converting facilities for manufacturing corrugated packaging. 2010 net income for the company was $168 million; of that, $22 million (EBITDA) was generated by the Building Products division.

A global manufacturer of uncoated papers and packaging products, IP has manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Headquartered in Memphis, TN, the company recorded net earnings of $644 million in 2010, along with net sales of more than $25 billion.

IP has not been heavily involved in the building products segment since July 2002, when it completed the sale of its Decorative Products division to Nevamar Co. LLC. That division included high and low pressure laminates and particeboard facilities.

The agreement by Temple-Inland stockholders ends a months-long effort by IP to acquire the Texas-based company. An earlier offer by IP of $30.60 per share had been unanimously rejected by Temple-Inland in June.

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