Temple-Inland to buy Gaylord Container Corp.
Temple-Inland Inc. will buy paper packaging products manufacturer
Gaylord Container Corp. in a stock and debt deal, which will help boost
its position in the brown paper packaging market. Temple-Inland will pay
about US$ 100 million in stock for Gaylord. Temple-Inland will also
assume US$ 686 million in Gaylord's debt. If the deal is completed,
Temple-Inland's subsidiary, Inland Paperboard and Packaging Inc.,
would become the fourth-largest containerboard producer and the third
largest corrugated maker in North America.
In contrast, a New York-based hedge fund that holds US$ 500,000 in
principal on loan notes for Gaylord has filed a class-action lawsuit
seeking to halt Temple-Inland Inc.'s planned purchase of Gaylord