Boise Cascade to Exit Paper Business
Boise Cascade Corp., Boise, Idaho, plans to sell its paper and timber assets to a private investment group for approximately $3.2 billion in cash to focus on worldwide distribution of office products. The sale to a new company formed by Madison Dearborn Partners LLC, a Chicago investment firm, will be completed by November. Boise Cascade will change its name to OfficeMax, acquiring the name of the Cleveland-based office products seller it bought late last year for $1.2 billion in cash and stock. It will be headquartered in Itasca, Ill., outside Chicago.
The transformation from ailing manufacturer to retailer was envisioned by many paper industry analysts a year ago when Boise announced it was acquiring OfficeMax, the nation's third-largest office supplies retail chain, ranking behind Staples Inc. and Office Depot Inc.
Among the assets Boise Cascade is shedding are its 22 wood products facilities in the United States, Canada and Brazil; 27 wholesale distribution centers; five pulp and paper mills, five corrugated container plants; and ownership or control of more than 2.3 million acres of timber.
To buy the assets, Madison Dearborn has formed a company called Boise Cascade LLC, which will be based in Boise. It will be run by W. Thomas Stephens, former president of MacMillan Bloedel Ltd., a Canadian forest products company. That will leave the new OfficeMax to concentrate on selling office furniture, electronics, paper and other supplies to consumers through its nearly 1,000 retail stores and to businesses through its catalog and internet operations.
Superior Business Solutions Purchases Hinco
Superior Business Solutions, a distributorship in Kalamazoo, Mich., purchased Hinco, a South Bend, Ind.-based supplier of bar coding systems, technologies, supplies and repair services. All Hinco products and services now will be offered under Superior Business Solutions' brand from the Hinco facility. Superior Business Solutions will remain an authorized dealer of Printek equipment and services, and a full-line supplier of thermal transfer printers, forms and ribbons. With eight locations in Michigan, Ohio, Pennsylvania and Indiana, Superior Business Solutions offers print management services for business forms and commercial printing, and one-to-one marketing technologies, promotional products and premiums.
Reynolds Faces Class Action Suit
The law firm of Schiffrin & Barroway, Bala Cynwyd, Pa., has filed a class action suit against Reynolds and Reynolds, Dayton, Ohio, alleging that the company "failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the company knew or recklessly disregarded the fact that market demand for the company's cutting-edge products, such as Reynolds Generation Series, was lackluster; (2) that as a consequence of the foregoing, the company's strategy for growth was seriously flawed as the company was forced to expend additional resources to pitch new products to unwilling customers, while neglecting the marketing of its more conventional revenue-producing products; and (3) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the company and their earnings projections."
Symbol to Buy Matrics for $230M
Symbol Technologies Inc., Oakland, Calif., which makes bar code scanners and portable data terminals, has agreed to buy privately held Matrics Inc., Rockville, Md., for $230 million to boost its position in the fast-growing data capture industry, the company said. Symbol declined to say if Matrics, which makes radio frequency identification (RFID) labels and tags, is profitable.
A.B. Dick Files for Bankruptcy
A.B. Dick Co., Niles, Ill., filed for Chapter 11 bankruptcy protection in a Delaware court, but said it has a buyer lined up to acquire its U.S. assets for $40 million. The buyer, New Hampshire-based Presstek Inc., and A.B. Dick's primary lender have agreed to provide $7 million in debtor-in-possession financing to help pay suppliers and employees while the company restructures. Terms of the agreement are subject to U.S. Bankruptcy Court approval.
A.B. Dick's parent company, Paragon Corporate Holdings Inc., and its three subsidiaries also filed for protection from creditors under Chapter 11, citing a difficult industry climate. The Bankruptcy Court is expected to rule on the sale within 90 days, during which time other interested parties can bid on A.B. Dick's assets. If the deal is approved, Presstek says A.B. Dick will remain in Niles and operate as a subsidiary. The company employs 720 people, 150 of them in Niles and 45 in Des Plaines. It's unknown whether A.B. Dick's current management will remain or whether layoffs will occur.
Heritage Partners to Acquire R.R. Donnelley Logistics' Division
Heritage Partners Inc., a private investment firm in Boston, agreed to acquire the package logistics business of R.R. Donnelley Logistics, a unit of R.R. Donnelley & Sons Company. Heritage Partners intends to combine the business with Santa Fe Springs, Calif.-based American Package Express, a provider of business-to-home parcel delivery solutions and the largest parcel work-share partner of the U.S. Postal Service. The agreement is subject to regulatory approval. R.R. Donnelley will retain its print logistics, fulfillment and distribution businesses, and will continue to provide third-party logistics management services.
