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MERGER: SMURFIT-STONE BUYS ST. LAURENT


March 1, 2000
By Pulp & Paper Canada

CHICAGO, IL — Chicago-based Smurfit-Stone Container Corp. has struck a deal to buy Montreal-based St. Laurent Paperboard Inc. for about US$1.4 billion. The deal has the US packaging giant laying out …

CHICAGO, IL — Chicago-based Smurfit-Stone Container Corp. has struck a deal to buy Montreal-based St. Laurent Paperboard Inc. for about US$1.4 billion. The deal has the US packaging giant laying out US$625 million in cash, Smurfit-Stone common stock and the assumption of St. Laurent’s debt, reportedly about US$386 million. St. Laurent shareholders will get $18.25 cash plus half a Smurfit common share, according to a report in The Globe and Mail. “This transaction enhances our shareholder value,” said Jay. J. Gurandiano, president and ceo of St. Laurent Paperboard. “Shareholders will be able to participate in the many benefits accruing from the combination of St. Laurent’s niche in higher value white top linerboard and microfluting grades and Smurfit-Stone’s preeminent position as the largest container and containerboard producer in North America.” The transaction is subject to St. Laurent shareholder approval and various regulatory approvals and is expected to close in the second quarter.


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