Temple-Inland, Gaylord Back on Deal

Temple-Inland Inc said Gaylord Container Corp agreed to be acquired for $1.17 a share, resurrecting a deal that was tabled earlier this year. The transaction would value Gaylord at $65 million, and Temple-Inland would also buy debt units and assume some bank loans, making the whole deal worth $847 million.

Temple is paying an additional $6.0 million under the new proposal, but is offering less to the company's equity holders and more to Gaylord's bond holders.

Previously, Temple-Inland had offered $1.25 per share or $70 million for the company's equity and planned to spend another $771 million in paying bond holders and assuming the company's debt. That would have valued the whole deal at $841 million.

Temple-Inland also said the revised deal will close on February 19.

The deal, which would boost Temple-Inland's presence in the brown paper packaging market would need at least two-thirds of equity holders and 90 percent of bond holders to accept the deal.