Boise Cascade Corp. will sell its paper, forest products and timberland assets. The buyer consists of affiliates of Boise Cascade LLC, a new company formed by Madison Dearborn Partners LLC, a Chicago-based investment firm. The purchase price is roughly $3.7 billion.
The sale represents a step in Boise’s transition from a manufacturing-based firm to a distribution company, according to a company statement. Boise will focus on its Boise Office Solutions, which will soon be known as Office Max. Boise Cascade will change its corporate name to OfficeMax Inc., and will trade under the symbol OMX.
The transaction is expected to close by mid-November. After it is completed, Boise will realize between $3.1 and $3.2 billion in cash proceeds after making a $175 million investment in Boise Cascade LLC. It will use $2.2 to $2.3 billion to retire debt, and convert the remaining amount into a stock buyback.
When the transaction is completed, George J. Harad, currently chairman and CEO of Boise Cascade Corp., will become executive chairman of the board of OfficeMax, Inc. Chris Milliken, currently division president and CEO for Boise Office Solutions, will be elected president and CEO of OfficeMax, Inc.
