Board of Directors Authorize Repurchase of Up to $500 Million of Common Stock
DEERFIELD, Ill., April 26 /PRNewswire/ -- Fort James Corporation
(NYSE: FJ) today announced it has agreed to sell its Packaging Business to ACX
Technologies, Inc. of Golden, Colorado, for $830 million in cash. The
agreement is another step forward in Fort James' plan to sharpen the company's
focus on its core consumer products businesses.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990204/CGTH023 )
The transaction is expected to be completed by mid-year. Closing is
subject to customary conditions, including antitrust reviews.
"Our Packaging Business has been a solid contributor," said Fort James'
Chairman and CEO Miles Marsh. "However, it is very much in our shareholders'
interest to continue to build Fort James as a consumer products company. We
view this transaction as a major step in focusing Fort James in the consumer
products arena. At the same time, our valued employees and customers should
benefit from being part of an organization strategically concentrated on
packaging."
The facilities involved in the sale manufacture folding cartons as well as
healthcare and microwave packaging for many of the nation's leading consumer
packaged goods companies. The affected facilities had 1998 sales of
approximately $590 million and a workforce of approximately 2,600 employees.
Fort James is the third-largest producer of folding cartons in the United
States.
The Packaging Business consists of 12 folding carton converting plants and
a 330,000 ton-per-year recycled paperboard mill in Kalamazoo, MI. The folding
carton plants are located in Charlotte, NC; Garden Grove, CA; Gordonsville,
TN; Kalamazoo, MI; Kendalville, IN; Menasha, WI; Mississauga, Ontario; Newnan,
GA.; North Portland, OR; Perrysburg, OH; Portland, OR; and Wausau, WI.
Not included in the transaction are Fort James' two bleached paperboard
machines that are an integral part of the company's Pennington, AL towel and
tissue mill, and which provide base paperboard for the company's Dixie cup and
plate business.
Fort James and ACX Technologies have also entered into a ten-year supply
agreement, under which Fort James will supply certain of ACX Technologies'
bleached paperboard needs. This supply contract, together with the Dixie
business' requirements for paperboard, provide a secure outlet for the
majority of the company's bleached paperboard production.
ACX Technologies has two primary businesses, Graphic Packaging Corporation
and Coors Ceramics Company. With 1998 sales of $988 million, ACX Technologies
has 38 manufacturing plants and 5,600 employees and is currently the
fifth-largest folding carton company in the United States. Following the
acquisition of Fort James' Packaging Business, ACX Technologies will become
the largest folding carton producer in the country.
In a related action, Fort James' Board of Directors has authorized the
repurchase of up to $500 million worth of the company's common stock, planned
for consummation over 18 months. The company will repurchase its common
shares from time to time on the open market or in negotiated transactions,
depending upon market conditions, applicable securities regulations and other
factors. Fort James currently has 220.8 million shares of common stock
outstanding. "We believe our continued efforts to promote long-term growth
and internal improvements, in combination with the repurchase of shares,
should significantly enhance shareholder value," said Marsh.
Fort James is a leading international consumer products company, serving
consumers both at home and away-from-home with bathroom and facial tissue,
paper towels, napkins, and cups, plates, cutlery and food wrap products. The
company's popular brands include Quilted Northern, Brawny, Dixie, Vanity Fair,
Mardi Gras, Soft 'N Gentle, Green Forest and So-Dri in North America and
Lotus, Colhogar, Tenderly, Embo, and Kittensoft in Europe. Fort James also
produces folding cartons for packaging food and pharmaceuticals and
communications papers such as printing, publishing and office copy paper.
With 1998 sales of $7.3 billion, the company has approximately
28,000 employees and more than 60 manufacturing facilities in the U.S., Canada
and 15 other countries around the world.
Copies of today's news release, along with additional information on Fort
James, is available, at no charge, by calling (888) 526 3711. You may also
access the company's web site at Internet address http://www.fortjames.com.
SOURCE Fort James Corporation
 back to top
Related links:
http://www.fortjames.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19990204/CGTH023
or NewsCom, 213-237-5431
CONTACT:
Financial, Celeste Gunter, 847-317-5355, or
Media, Mark Lindley, 847-317-5280, both of Fort James
|
