By: E&P Staff
Boise Cascade LLC agreed Friday to sell its newsprint and other paper and packaging business to private-equity start-up Aldabra 2 Acquisition Corp. for $1.63 billion in cash and stock.
When the deal closes, Aldabra, which trades on the American Stock Exchange, will change its name to Boise Paper Co., and seek a listing on the New York Stock Exchange or Nasdaq. The new company will be headed by Alexander Toeldte, Boise Cascade’s executive vice-president for paper, packaging and newsprint.
Chicago-based Madison Dearborn Partners, which has owned Boise Cascade since 2004, said it would retain its wood products and building-materials distribution business.
Rockville, Md.-based Aldabra will pay about $1.34 billion of the acquisition cost in cash. Boise Cascade’s paper businesses had revenues of $2.28 billion for the year ended June 30, and earned $231.7 million.
Aldabra said it would take on about $946 million in debt to swing the cash portion of the deal.