International Paper Co. is buying smaller rival Temple-Inland Inc. for $3.7 billion after sweetening its bid. The transaction will give the combined company about 40% of the corrugated packaging materials market in North America. IP, which has plants in Shreveport and Springhill, is the largest producer of corrugated packaging in North America, while Temple-Inland, which has a mill in Bogalusa is the third-largest. IP raised its bid to $32 per share for Temple-Inland, a 30% premium to its Friday closing price. This is higher than its previous bid of $30.60 per share in June, which its Austin, Texas, target had rejected as too low. IP, which is based in Memphis, Tenn., will also assume $600 million in debt. The proposed deal has been approved by the boards of both companies. If shareholders and regulators approve, the transaction is expected to close in 2012’s first quarter.
IP to buy Temple-Inland for $3.7 billion
Sign up for the free Daily Report email – local news about the people, companies and issues that impact business impact business in Baton Rouge and beyond.
