More Than Doubles the Size of Boise Office Solutions
BOISE, Idaho, Dec. 9 /PRNewswire-FirstCall/ -- Boise Cascade Corporation
(NYSE: BCC) announced today that it has completed its acquisition of
OfficeMax, Inc. (NYSE: OMX) for approximately $1.3 billion.
"Our acquisition of OfficeMax represents a major step in the
transformation of Boise's office products distribution business and Boise as a
whole," said George J. Harad, chairman and chief executive officer. "The
combined office products business will be strategically stronger and better
able to deliver compelling value to its customers through all channels and
across all segments of the market."
Christopher C. Milliken, division president and chief executive officer of
Boise Office Solutions, said, "In combining our two complementary
organizations, we will strive to be the leading provider of office products
and services through a relentless focus on our customers. We will succeed by
providing our customers with an unparalleled customer experience -- in
service, in product, in time savings, and in value."
Boise Office Solutions will operate in the United States under the brand
names OfficeMax in the retail segment and Boise Office Solutions in the
contract segment. Over time, the businesses will be brought together under
the OfficeMax brand.
Boise shareholders approved the transaction at a special meeting today,
casting 76.77% of the voted shares in favor of the acquisition.
At a concurrent meeting of OfficeMax shareholders today, 71.68% of
outstanding OfficeMax shares approved the acquisition. OfficeMax common stock
will be delisted before the opening of the market on December 10.
"OfficeMax co-founder, Chairman, and CEO Michael Feuer deserves
recognition for his leadership in building OfficeMax into the nation's
third-largest office products retailer," Harad said. "His vision and skill
helped to create the outstanding business we are acquiring today."
The acquisition of OfficeMax more than doubles the size of Boise Office
Solutions to pro forma 2002 sales of $8.3 billion. Boise anticipates that
synergy benefits from the acquisition will reach an annual amount of
$160 million: $100 million in 2004, $150 million in 2005, and $160 million
in 2006.
Boise also announced today that:
-- Chris Milliken will be division president and CEO of the combined
office products business, Boise Office Solutions, reporting to
Boise Cascade Corporation Chairman and CEO George Harad.
-- The combined office products distribution business will be
headquartered in Itasca, Illinois, the current headquarters of
Boise Office Solutions.
-- Retail operations will be managed in Shaker Heights, Ohio, by Gary
Peterson, former president and chief operating officer of OfficeMax,
who will become president -- retail and report to Chris Milliken.
-- Boise Cascade Corporation continues to be headquartered in Boise,
Idaho, along with two of its business divisions -- Boise Building
Solutions and Boise Paper Solutions.
Other management positions announced for the combined office products
operations include: Harold Mulet, executive vice president -- retail stores;
Michael Rowsey, president -- contract; Kenneth Cupp, senior vice president --
contract sales; Ryan Vero, executive vice president, merchandising; David
Goudge, executive vice president, marketing; Carol Moerdyk, senior vice
president, administration; Lorene Flewellen, senior vice president, human
resources; Thomas Carlile, interim chief financial officer; Jim Balkins,
senior vice president, integration; and Gary Massel, senior vice president --
contract logistics.
"The combination of Boise Office Solutions' exceptional strength in the
contract customer segment with OfficeMax's proven retail expertise and strong
brand creates a platform for growth, particularly in the small- and mid-sized
business segment," Harad said. "We are combining forces to seize a unique
growth opportunity for our distribution business and to strengthen our
competitive position."
Press kit materials regarding this transaction, including fact sheets on
Boise and OfficeMax, executive bios, photographs, and other items, are
available on the Internet at http://www.bc.com/media.htm .
About Boise Office Solutions
Boise Office Solutions, headquartered in Itasca, Illinois, is a division
of Boise and a premier multinational distributor of office supplies and paper,
technology products, and office furniture. Boise Office Solutions and
OfficeMax combined serve all office products customers from individuals to
small organizations to multinational corporations. We serve our customers
through 83 distribution centers, four outbound sales centers, six customer
service centers, and more than 1,000 retail stores in the United States,
Canada, Mexico, Puerto Rico, the U.S. Virgin Islands, Australia, and New
Zealand.
About Boise Cascade Corporation
Boise, headquartered in Boise, Idaho, is dedicated to providing our
customers with solutions to help them work more efficiently, build more
effectively, and create new ways to meet business challenges. Boise is a
major distributor of office products and building materials and an integrated
manufacturer and distributor of paper, packaging, and wood products. We own
or control more than 2 million acres of timberland, primarily in the United
States, to support our manufacturing operations. Boise reported sales in 2002
of $7.4 billion. Visit the Boise website at http://www.bc.com .
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. These statements include those that refer to our expectations about
this transaction, including those statements that refer to the expected
benefits of the transaction to our shareholders, the anticipated synergy
benefits, and the expected impact of this transaction on our financial
results. These forward-looking statements are based on management's current
expectations and beliefs and are subject to a number of risks, uncertainties,
and assumptions that could cause actual results to differ materially from
those we describe in the forward-looking statements. The risks,
uncertainties, and assumptions include the possibility that we will be unable
to fully realize the benefits we anticipate from the acquisition; the
possibility that we will incur costs or difficulties related to the
integration of our businesses greater than we expected; our ability to retain
and motivate key employees of both organizations; the difficulty of keeping
expense growth and integration costs at modest levels while increasing
revenues; the challenges of integration and restructuring associated with the
transaction; the challenges of achieving anticipated synergies; and other
risks that are described from time to time in our Securities and Exchange
Commission reports.
SOURCE Boise Cascade Corporation
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Related links:
http://www.bc.com
Company News On-Call:
http://www.prnewswire.com/comp/115342.html
CONTACT:
Media, Ralph Poore, +1-208-384-7294 or home
+1-208-331-2023, or Investors, Vincent Hannity, +1-208-384-6390
or cell +1-208-890-6385, both of Boise Cascade Corporation
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