RICHMOND, Va., Dec. 9 /PRNewswire/ -- James River Corporation (NYSE: JR)
announced today that it has completed the sale of its minority ownership
interest in WinCup Holdings L.P. to Radnor Holdings Corporation of Radnor, Pa.
James River received a total of approximately $29 million in cash as
consideration for the sale of its 45 percent interest in WinCup Holdings L.P.
and other related assets and the collection of long-term notes receivable from
Radnor.
In January 1996, James River received the 45 percent interest in WinCup
Holdings, $10 million face value of subordinated long-term notes, and
$26 million in cash when it combined its Handi-Kup foam cup operations with
Radnor's foam cup operations to form WinCup Holdings L.P.
James River expects to record a gain of approximately $.15 per share in
the fourth quarter related to this transaction. This sale is part of the
company's ongoing efforts to strengthen its balance sheet, improve
profitability and focus its business portfolio. "Combined with other asset
sales this year, James River has now collected a total of $496 million in
gross cash proceeds, essentially achieving our goal of generating at least
$500 million from divestitures to be used for debt reduction," noted Miles L.
Marsh, Chairman and Chief Executive Officer.
James River Corporation, headquartered in Richmond, Va., is a leading
marketer and manufacturer of consumer products, packaging, and business,
printing and converting papers. In North America, the company markets
diversified brands such as Quilted Northern bathroom tissue, Brawny paper
towels, Dixie paper cups and plates, Quilt-Rap sandwich wrap, Qwik Wave
microwave packaging, Eureka! recycled copy paper and Word Pro copy paper. In
addition, the company produces a number of popular European brands such as
Lotus towel and tissue products. James River's current annual sales rate is
approximately $5.5 billion.
Today's news release, along with past releases from James River, is
available by fax, at no charge, by calling 800-758-5804, ext. 457350. You may
access James River's corporate-wide site at Internet address
http://www.jamesrivercorp.com.
SOURCE James River Corporation
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CONTACT:
Richard B. Elder, Media, 804-343-4785 or
Celeste Gunter, Financial, 804-649-4307, both of James River
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