SCDE closes on what promises to be the first of a series of acquisitions:
Stone Arcade Acquisition Corporation Completes Acquisition of International Paper's Kraft Papers Business
Tuesday January 2, 5:37 pm ET
CHICAGO, Jan. 2 /PRNewswire-FirstCall/ -- Stone Arcade Acquisition Corporation (OTC Bulletin Board: SCDE - News) today announced it has completed the acquisition of International Paper's kraft papers business and will change its name to KapStone Paper and Packaging Corporation.
"The acquisition of IP's kraft papers business is an important first step for our company," said Roger Stone, Chairman and Chief Executive Officer of Stone. "It provides us with a solid platform from which we hope to expand. We are anxious to continue building on the success of this business while we simultaneously explore strategic acquisitions."
KapStone Paper and Packaging will continue to be headquartered in Northfield, IL. The newly acquired kraft papers business will operate as Kapstone Kraft Paper Corporation, and includes a paper mill in Roanoke Rapids, NC, and Ride Rite®, a dunnage bag plant in Fordyce, AR. The business employs approximately 700 people.
The company's leadership team has more than a century of combined industry experience. Key individuals include Roger W. Stone, Chairman and Chief Executive Officer, and Matthew Kaplan, President and Chief Operating Officer. Tim Keneally will serve as Vice President of KapStone Paper and Packaging and President of Kapstone Kraft Paper Corporation. Other Kapstone Kraft officers include Tonie Meyers, Vice President of Mill Sales and Customer Service; Anitra Collins, Vice President of Mill Operations; and Tom Bennington, Vice President of Ride Rite®.
"We are very excited about the acquisition of IP's kraft papers business," added Matt Kaplan. "The Roanoke Rapids mill and Ride Rite® have been successful in creating strong, long-term customer relationships resulting from outstanding quality and service. We believe both businesses are well positioned for the future."
Stone Arcade originally announced plans to purchase International Paper's kraft papers business in June 2006 for approximately $155 million in cash, subject to certain post-closing adjustments, and two payments totaling up to $60 million, payable five years from the close of the transaction, contingent upon business performance.
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