Temple-Inland Acquiring Gaylord

Temple-Inland Inc. signed an agreement to acquire Gaylord Container Corp. for $100 million, plus close to $700 million to acquire all the notes and satisfy the bank debt and other debt obligations. The deal is expected to be completed by the Oct. 26^th, although Temple may extend either component under certain circumstances.

In announcing the transaction, Kenneth Jastrow, II, chairman and CEO of Temple-Inland said, ``The addition of Gaylord will extend our market reach, add to our customer base and provide increased operational efficiency. In addition, this acquisition enhances our industry position and furthers our strategic objective to grow our company with the addition of high-quality assets.''

Marvin Pomerantz, chairman and CEO officer of Gaylord stated, ``We are very pleased that our outstanding operating team will be joining forces with one of the industry's premier companies. The combination of our two companies will create an organization that will be among the very best in the industry.''

Combined the two companies are significant consumers of recovered fiber, especially old corrugated.

Over the past several years Gaylord Container has been rumored to be acquired by a host of companies. The announced acquisition follows a slew of other high-profile mergers and acquisitions in the forest products industry.