Boise to Buy OfficeMax
Boise, Idaho-based supplier Boise Cascade Corp. agreed to buy Cleveland-based OfficeMax Inc., the No. 3 U.S. office supplies retailer, for $1.15 billion in a bid to become a major office products retailer and move away from offering manufacturing paper and building materials. The cash and stock deal would more than double its office products business, Boise said.
Boise said it's considering a possible sale or spin-off of its paper and building products units, which have been hurt by rising energy costs and falling prices. The company, which is conducting a 12- to 18-month review of alternatives for its businesses, said a split or spin-off could attract a higher valuation for its shares.
Recently, Boise announced a second-quarter loss of $3.9 million, citing weakness in its papermaking and building materials units (which lost 89 percent and 30 percent, respectively). Boise's office product unit was its only segment to perform better than in the same quarter last year.
ICC, ACOM Solutions Form Alliance
Internet Commerce Corporation (ICC), a New York-based business-to-business e-commerce provider, formed a strategic alliance with ACOM Solutions Inc., a developer of data translation and connectivity solutions based in Long Beach, Calif.
According to the agreement, ICC and ACOM will market the ICC.NET network service in conjunction with ACOM's EZConnect XML data translation solutions, providing customers with a unified and fully automated supply-chain solution. The two companies plan to resell each other's products and services and promote them to existing customers, including ones in the health care, manufacturing, transportation and distribution, and financial industries. Currently, the ICC/ACOM solution is being implemented at a manufacturer and marketer of wireless data products and accessories, as well as one of the nation's largest prosthetics and orthotics providers.
Postal Service Allows Creative Direct Mail Pieces
Customized MarketMail (CMM), a new postal classification that allows direct marketers to design more creative direct mail pieces, took effect Aug. 10. For pieces one-quarter-inch thick or less, firms can't send non-rectangular pieces, irregularly shaped pieces or pieces with holes unless they're in a package, carton or envelope. But CMM, which recently was approved by the U.S. Postal Service's Board of Governors, allows such pieces as long as they meet certain requirements. Pieces may weigh 3.3 oz. and measure 12 x 15 inches with a three-quarters-inch thickness. Prices will be based on Standard Regular and Nonprofit Mail basic tier, plus a residual shape surcharge.
Reynolds Has Healthy Quarter
Reynolds & Reynolds, a manufacturer based in Dayton, Ohio, reported earnings of $28.2 million, or 40 cents per share, for its third quarter ended June 30. Lower-than-expected spending on information technology continued to affect the company's revenue growth. The firm's Financial Services revenues declined primarily due to lower interest rates.
In addition, Networkcar™, a Reynolds & Reynolds company, was granted a patent entitled "Internet-Based Method for Determining a Vehicle's Fuel Efficiency" by the U.S. Patent and Trademark Office. Using the new technology, each Networkcar customer can examine his or her car's performance by viewing a web page that displays monthly changes in fuel efficiency.
Weyerhaeuser to Cut 330 Jobs
Federal Way, Wash.-based supplier Weyerhaeuser Co., the No. 3 U.S. maker of paper and building products, said it will eliminate 330 hourly employees as it closes a sawmill and cuts staffing at a pulp and paper mill in Dryden, Ontario. The cuts will take effect Oct. 11. The closure of the sawmill, which the company said is too small and old, will affect about 110 hourly employees, and the paper mill reductions will affect about 220 people.
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