IP launches hostile takeover bid for Temple-Inland
After being rebuffed by Temple-Inland’s board of directors, International Paper is making an unsolicited offer to acquire all the outstanding shares of common stock of the wood products company for $30.60, according to documents filed with the Securities ad Exchange Commission (SEC).
On June 6, Temple-Inland announced it had received an unsolicited proposal from International Paper to acquire the company, also for $30.60 per share in cash. Temple-Inland’s board of directors voted unanimously to reject that offer, saying it “grossly undervalued” the company and was not in the best interest of Temple-Inland’s stockholders.
In its communications with Temple-Inland stockholders, International Paper said it has tried to negotiate with Temple-Inland “multiple times.” International Paper will finance the $3.7 billion deal with $1.5 billion in cash and the rest in borrowings. The merged company would eventually go private, the communication said.
Temple-Inland’s board advised its holders to take no action at this time while it reviews the latest unsolicited offer. But on June 7, after receiving its first formal proposal from International Paper, the company adopted a “poison pill” plan that significantly increases the number of Temple-Inland shares and erects other barriers if an investor acquires 10% or more of the company’s stock.
Based in Austin, Texas, Temple-Inland produces lumber, gypsum board, fiberboard and other building materials, as well as corrugated packaging.
Trex issues warnings for Q2 results
Composite deck maker Trex has announced preliminary second-quarter results, predicting lower-than-expected revenues of $78 million, as opposed to previous expectations of $115 million.
In a prepared statement, chairman, president and CEO Ronald Kaplan commented: "Sales did not materialize as expected during the second quarter. Poor weather and, to a lesser extent, the unfavorable macroeconomic environment caused the lower-than-expected revenue performance. Many parts of the country experienced major winter storms through April, which were then followed by heavier-than-normal precipitation during most of May, further delaying the start of the decking season. As a result, our trailing nine-month revenue through June was down approximately 4% compared with the prior year. We believe that the external factors influencing our sales are also impacting the overall market and that we continue to expand Trex’s industry-leading market share.”
Kaplan also noted that sales order activity in June exceeded order activity in June 2010 by 15%, and order activity in the first week of July is outpacing July of last year. “As we move further through the month, we will be in a better position to provide more detailed third-quarter revenue guidance when we report our second-quarter financial results on Aug. 1, 2011," Kaplan said.
CertainTeed CEO retires
Peter Dachowski, president and CEO of CertainTeed, has announced his retirement, effective Aug. 31, 2011.
He will be succeeded by John Crowe, who is currently the president of Saint-Gobain’s global abrasives business. Crowe has held numerous leadership positions within the Saint-Gobain group of companies over the past 30 years. As the president of Saint-Gobain Abrasives, he is responsible for 13,000 employees and approximately 75 manufacturing facilities in 24 countries.
Dachowski spent 35 years with CertainTeed Corp., and its parent company Saint-Gobain. He served in a long progression of executive roles in finance and global management. Prior to joining CertainTeed in 1976, Dachowski worked for Exxon Treasurers and the Boston Consulting Group.
At CertainTeed, Dachowski was quickly promoted to VP and treasurer and later, corporate comptroller. Through the late 1980s, despite an economic downturn, he led significant growth in CertainTeed’s roofing, ventilation, siding and window businesses through new product innovations and acquisitions. In the early 1990s, his responsibilities were expanded to include all of CertainTeed’s building materials manufacturing and wholesale distribution businesses.
In 1996, Dachowski was appointed as president of Saint-Gobain’s worldwide insulation business, based in Paris, driving significant growth particularly in Eastern Europe and Russia, expanding the ceilings business in the Far East, restoring the profitability of the stone wool business and developing a common global brand identity.
Since his return to North America as president and CEO of CertainTeed in 2004, Dachowski has led key initiatives focused on quality, innovation and sustainability that have positioned the company as a major player in both residential and commercial building products. Under his direction, CertainTeed expanded significantly into Canada, established an industry-first building science team and launched revolutionary product innovations, such as AirRenew volatile organic compound (VOC) scavenging drywall, the EnerGen photovoltaic roofing system and Landmark Solaris solar reflective roofing shingles.