<b>Inland Paperboard Acquiring Chesapeake Divisions</b>

Temple-Inland Inc., the parent company of Inland Paperboard and Packaging, Inc., and Chesapeake Corp. announced the signing of an agreement by which Inland will acquire Chesapeake Packaging Co. and Capitol Packaging Corp., both wholly owned subsidiaries of Chesapeake. Chesapeake Packaging and Capitol Packaging are the corrugated boxmaking operations of Chesapeake. The two divisions consist of ten corrugated container plants.

The purchase price is $120 million. The transaction is scheduled to close in May, pending regulatory approval and satisfaction of customary closing conditions.

The move follows Chesapeake’s decision to focus on the specialty packaging markets.