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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2725)	1/25/2011 11:02:37 AM
From: richardred	Read Replies (2) \| Respond to of 7239

SEE-It's been on the watch list for some time. Sold BMS awhile back. Packaging my biggest weighted sector in my portfolio. Sealed Air's EPS and Revenues Up Zacks Equity Research, On Monday January 24, 2011, 3:15 pm EST Sealed Air Corporation (NYSE: SEE - News) delivered adjusted EPS of 46 cents for the fourth quarter ended December 31, 2010, on par with the Zacks Consensus Estimate. Earnings per share in the quarter manifested a 15% increase over 40 cents in the year-ago quarter. Growth across all of its segments, productivity gains as well as tight control of expenses and pricing actions led to the improvement. During the quarter, the company recorded a losses on debt redemption of 14 cents per share, a restructuring charge of 1 cent per share related to its Global Manufacturing Strategy (GMS), a 3 cents per share restructuring charge related to closure of its European manufacturing facility and a 1 cent per share gain on sale on other-than-temporary impairment of available-for-sale securities. In the previous year quarter, Sealed Air recorded a restructuring charge of 3 cents per share pertaining to the company’s Global Manufacturing Strategy (GMS). Netting these gains/charges, the company reported an EPS of 29 cents in the quarter compared with 37 cents in the year-earlier quarter. Sealed Air’s sales increased 5% year over year to $1.21 billion and was above the Zacks Consensus Estimate of $1.20 billion. Volumes increased 7% in the quarter. Costs & Margin Performance In dollar terms, cost of sales increased 8% year over year to $877.4 million and based on sales, it increased 170 basis points to 72.6% in the reported quarter. Adjusted gross profit was flat year over year at $335 million but gross margin contracted 160 basis points to 27.7%. Marketing, administrative and development expenses dipped 7% year over year to $189.8 million and based on sales, expenses dipped 210 basis points to 15.7%. Sealed Air’s adjusted operating income upped 10% year over year to $145.1 million, with operating margin also going up by 50 basis points to 12%. Segment Performance Sales at the Food Packaging segment went up by 6% to $533.6 million driven by a 6% hike in volumes fueled by increased volumes in North America and Europe of 7% and 9% respectively. Price/mix was negatively affected by the volatility of the foreign currency environment in Venezuela and selectively lower pricing associated with higher customer volume commitments. Operating profit increased 17% to $78.4 million, and segment margin shot up 140 basis points to 14.7%. The Food Solutions segment posted sales growth of 4% to $247.2 million due to 6% higher volumes, primarily driven by an 11% increase in Europe and steady price/mix. Operating profit increased 43% to $27.7 million and segment operating margin expanded 300 basis points to 11.2% ascribed to leveraging higher volumes and tight control of expenses. The Protective Packaging segment posted the highest year-over-year growth of 19% amongst the segments to reach sales of $345 million. The outperformance was driven by volumes growth of 8% reflecting improving industrial production rates in North America and Europe. Price/mix was however 1% lower due to selective pricing actions, the introduction of new thinner profile products and the timing of December price increase. Operating profit declined 9% to $38 million with operating margin contracting 190 basis points to 11% due to charges associated with the December announcement of the closure of a small factory in Europe. Adjusting for the costs of the closure, operating profit would have been $45 million with operating margin of 13%. The Other Category segment’s sales posted a 3% increase to $83.4 million driven by 8% higher volumes reflecting growth in both Specialty Materials and Medical Applications. Price/mix was 2% lower primarily due to volume rebates in the Medical Applications business. The segment reported a loss of $2 million, primarily from its new ventures investments. Fiscal 2010 Performance Sealed Air’s adjusted EPS for fiscal 2010 was $1.60, up 11% from $1.44 in fiscal 2009. During fiscal 2010, the company recorded a loss on debt redemption of 14 cents per share, foreign currency exchange gain 2 cents per share related to a Venezuelan subsidiary and 3 cents per share restructuring charge each for GMS and European manufacturing facility closure and a 2 cents per share gain on sale of other-than-temporary impairment of available-for-sale securities. In 2009, Sealed Air recorded a penny each for loss on redemption and loss on sale of other-than-temporary impairment of available-for-sale securities and 7 cents per share restructuring chare pertaining to GMS. Including these, the company reported an EPS of $1.44 in fiscal 2010 compared with $1.35 in the earlier year. Fiscal 2010 revenues increased 6% year over year to $4.49 billion, outperforming the Zacks Consensus Estimate of $4.48 billion. Full year volumes increased 5%. Financial Position As of December 30, 2010, Sealed Air had cash and cash equivalents of $676 million, down from $762 million as of September 30, 2010. Free cash flow for fiscal 2010 was $342 million compared with $338.5 million in $501 million in fiscal 2009. At the end of the year, the debt-to-capitalization ratio improved to 60% compared with 66% as of September 30, 2010. Sealed Air expects capital expenditures in fiscal 2011 to be $150 to $175 million and free cash flow to exceed $300 million. Outlook Sealed Air expects full-year 2011 EPS to range between $1.75 and $1.90. The guidance range is based on expectations of a modest rate of economic recovery and an average constant dollar sales growth rate in the 5% to 7% range. Further, the company assumes a low-to-mid single-digit percent average increase in resin costs over the year, a slightly unfavorable impact on net sales from foreign currency translation, depreciation and amortization of property and equipment of $145 million, amortization of non-cash, long-term, share-based compensation of $30 million, interest expense of $150 million and an effective income tax rate of 27.0%. Elmwood Park, New Jersey-based Sealed Air Corp. is a major specialty packaging services provider catering to a diverse set of end-markets. The company operates in the United States and in 50 other countries with packaging and performance-based materials and equipment systems under several market leading brands serving food, medical and an array of industrial and consumer applications. The company reports its operations in four segments: Food Packaging, Protective Packaging, Food Solutions and the Other Category segment. Sealed Air competes with the likes of Bemis Company, Inc. (NYSE: BMS - News), Sonoco Products Co. (NYSE: SON - News) and privately held Printpack, Inc. SONOCO PRODS CO (SON): Read the Full Research Report SEALED AIR CORP NEW (SEE): Read the Full Research Report BEMIS INC (BMS): Read the Full Research Report Zacks Investment Research finance.yahoo.com

To: richardred who wrote (2725)	4/13/2011 11:35:28 AM
From: richardred	Respond to of 7239

Silgan to Buy Graham Packaging for $4.1B By Jennifer Booton Published April 13, 2011 Consumer goods packager Silgan Holdings (SLGN: 41.06, +4.23, +11.49%) has inked a deal to acquire Graham Packaging (GRM: 20.91, +4.20, +25.13%) in a cash and stock deal valued at $4.1 billion, including debt, in an effort to expand its exposure to the food and beverage industry. The deal, slated to close in the second half of this year, will result in a company employing a total of 17,000 workers in 180 plants worldwide, with sales expected to exceed $6.2 billion. Graham stockholders will receive $4.75 and 0.402 share of Silgan common stock for each of their Graham shares. The deal represents a 17% premium to its closing price on Tuesday. “This acquisition creates the premier food and specialty beverage packaging company, allowing Silgan to significantly broaden its ability to serve these important markets with multiple rigid packaging options,” Tony Allott, Silgan’s chief executive said in a statement. The move comes days after private equity company Blackstone (BX: 18.25, +0.15, +0.83%), which holds a 61% stake in Graham, received approval by the European Union to buy Mivisa, a food-can maker based in Spain. The deal, which has been unanimously approved by both companies’ boards of directors, will provide a wide portfolio of packing solutions, including metal cans, closures and rigid plastic containers. Each of Silgan’s co-chairmen, Philip Silver and Greg Horrigan, who together own 29% of the company, have agreed to vote their shares in favor of the deal. Blackstone, and the Graham Family, who collectively own 65% of Graham’s common shares, have also agreed to vote in favor of the deal. Read more: foxbusiness.com foxbusiness.com

To: richardred who wrote (2725)	9/6/2011 11:25:04 AM
From: richardred	Read Replies (1) \| Respond to of 7239

International Paper to Buy Temple-Inland By Christopher Donville - Sep 6, 2011 10:36 AM ET Temple Inland Inc. via Bloomberg The Temple-Inland Inc. logo is displayed on a sign at the entrance to one of the company's facilities. The Temple-Inland Inc. logo is displayed on a sign at the entrance to one of the company's facilities. Source: Temple Inland Inc. via Bloomberg International Paper Co. (IP), the largest pulp and paper maker, agreed to acquire Temple-Inland Inc. (TIN) after raising its offer to $3.7 billion, ending a three-month battle for control of the shipping-box manufacturer. International Paper increased the all-cash bid to $32 a share, the Memphis, Tennessee-based company said today in a statement. Temple-Inland, which is based Austin, Texas, had previously rejected a June 6 offer of $30.60 a share as too low. Temple Inland rose as much as 26 percent in New York. To fend off the original bid, Temple-Inland had adopted a so-called poison pill takeover defense that limited any person or group from acquiring more than 10 percent of its stock. The company also has a staggered board, meaning it could have taken more than a year for International Paper to gain control through proxy fights. “The choice we had to make was do we sit and wait for a long time and take the hard road or take the easy road,” International Paper Chief Executive Officer John Faraci said today in a telephone interview. “We’ve said from the outset that a friendly, negotiated transaction was our objective and that’s what we accomplished.” Faraci said in June the deal would raise International Paper’s share of the North American corrugated-packaging market to about 37 percent from 27 percent. Regulatory approval for the deal is expected by the year-end, he said today on a conference call. Markets Drop Temple-Inland rose $6.25, or 25 percent, to $30.88 as of 10:34 a.m. in New York Stock Exchange composite trading. The shares traded as low as $19.03 on Aug. 23 amid tumbling stock markets and on speculation the takeover wouldn’t proceed. International Paper climbed 55 cents, or 2.2 percent, to $26.04. Temple-Inland’s “growing awareness” of weakness in U.S. stock markets and the country’s economy probably compelled it to come to the negotiating table sooner than expected, Faraci said in the interview. “When we got into due diligence we saw some plusses and some minuses that affirmed our value,” he said. Evercore Partners Inc., UBS AG and law firm Debevoise & Plimpton LLP are advising International Paper. Goldman Sachs Group Inc. and Wachtell, Lipton, Rosen & Katz are advising Temple-Inland. In January, Norcross, Georgia-based Rock-Tenn Co. agreed to buy Chicago-based Smurfit-Stone Container Corp. for $4.5 billion to become North America’s second-biggest containerboard producer, after International Paper. bloomberg.com

To: richardred who wrote (2725)	4/24/2013 10:11:03 AM
From: richardred	Respond to of 7239

Koch’s Georgia-Pacific Agrees to Buy Buckeye for $1.45 Billion By Sonja Elmquist - Apr 24, 2013 9:38 AM ET Facebook Share LinkedIn Google +1 0 Comments Print QUEUE Q Georgia-Pacific LLC, the U.S. paper and pulp producer controlled by the Koch brothers, agreed to buy Buckeye Technologies Inc. (BPL) for about $1.45 billion to add cellulose-products output. Georgia-Pacific will pay $37.50 a share, the companies said today in a statement. That’s 25 percent more than Memphis, Tennessee-based Buckeye’s closing share price yesterday. The stock rose 25 percent to $37.50 at 9:34 a.m. in New York. Enlarge image The deal with Buckeye Technologies Inc. is the largest since Atlanta-based Georgia-Pacific LLC was acquired by closely held Koch Industries Inc. in 2005, according to data compiled by Bloomberg. Photographer: Victor J. Blue/Bloomberg Buckeye makes specialty fibers and non-woven materials from wood and cotton at plants in Florida, Tennessee, North Carolina and Germany. The deal is the largest since Atlanta-based Georgia-Pacific was acquired by closely held Koch Industries Inc. in 2005, according to data compiled by Bloomberg. Buckeye’s financial adviser is Barclays Plc and Dechert LLP is its legal adviser. UBS AG and Blackstone Group LP are Georgia-Pacific’s financial advisers. bloomberg.com

To: richardred who wrote (2725)	6/16/2013 6:17:38 PM
From: richardred	Respond to of 7239

Weyerhaeuser Buys Timberlands and Weighs Selling Its Home-Building Unit By MICHAEL J. DE LA MERCED Weyerhaeuser said on Sunday that it planned to buy 645,000 acres of timberland for about $2.65 billion and added that it was weighing a sale or spinoff of its home-building unit. It also announced the appointment of Doyle Simons as its new chief executive, succeeding Daniel S. Fulton, who will serve as executive vice chairman in August before retiring in October. Weyerhaeuser is buying the acreage through its acquisition of Longview Timber from Brookfield Asset Management, gaining lands in Washington and Oregon. The deal will expand the company’s holdings in the Pacific Northwest by 33 percent, to 2.6 million acres, and increase its overall holdings in the United States to 6.6 million acres. As part of the deal, Weyerhaeuser will raise its quarterly dividend to 22 cents a share, from 20 cents a share. Weyerhaeuser also plans to explore a potential sale of its home-building division, the Weyerhaeuser Real Estate Company. The business, which includes Pardee Homes, is one of the country’s biggest home builders. “The board of directors and management team are committed to further enhancing value for all Weyerhaeuser shareholders,” Mr. Fulton said in a statement. “Given the improving fundamentals of the housing market, we believe now is a prudent time to explore strategic alternatives for this business.” dealbook.nytimes.com

To: richardred who wrote (2725)	9/16/2013 9:34:27 AM
From: richardred	Read Replies (1) \| Respond to of 7239

Packaging Corp offers to buy Boise for $1.28 billion (Reuters) - Packaging Corp of America said it would acquire smaller rival Boise Inc for about $1.28 billion to boost its container board capacity. Packaging Corp's offer of $12.55 per share represents a premium of 26 percent to Boise's Friday close. Boise shares were trading at $12.53 before the bell. Packaging Corp shares jumped 10 percent to $60.03. Packaging Corp, the fourth-largest maker of containerboard and corrugated packaging products in the United States, said it would assume Boise's $714 million debt. The deal, expected to add to earnings immediately, will increase Packaging Corp's containerboard capacity by 42 percent to 3.7 million tonnes (1 tonne = 1.102 metric tons). The company also said the acquisition will boost its presence in the Pacific Northwest. Packaging Corp was advised by BofA Merrill Lynch while JP Morgan Securities LLC advised Boise. finance.yahoo.com

To: richardred who wrote (2725)	2/22/2014 9:41:27 AM
From: richardred	Respond to of 7239

Ireland's Smurfit eyes acquisitions, hikes dividend Wed Feb 12, 2014 3:25am EST DUBLIN, Feb 12 (Reuters) - Irish packaging group Smurfit Kappa is looking for acquisitions in the Americas and eastern Europe and will return cash to shareholders if it doesn't find the right target, it said on Wednesday. Smurfit, which designs and manufactures paper-based packaging for the likes of Unilever and Procter & Gamble, raised its dividend by 50 percent to 30.75 cents a share after posting a jump in fourth-quarter results. Its shares rose 4.7 percent to 18.95 euros by 0817 GMT, supported by the higher payout to investors. "Our focus is on doing M&A (mergers and acquisitions)," Chief Financial Officer Ian Curley told reporters. "If we don't find any to do, we will return capital to shareholders." Smurfit, whose pretax profit rose 91 percent to 62 million euros ($85 million) in the fourth quarter, is looking at purchases in the high growth areas of the Americas and eastern Europe in particular, it said in a statement. The company brought down its net debt by 6 percent in 2013 to 2.6 billion euros, which boosts its available cash. "For a long time, the company used its strong cash generation to pay down debt. Now that the balance sheet has been repaired, shareholders should really start to get the benefit of the cash," said Barry Dixon of Davy Research. reuters.com