IP to sell Temple-Inland
Less than a year after purchasing it in a hostile takeover, International Paper (IP) has agreed to sell its Temple-Inland Building Products division to Georgia-Pacific for $750 million in cash, subject to certain pre-and post-closing adjustments. The assets to be sold include16 manufacturing facilities: five solid wood mills, four particleboard plants, two medium-density fiberboard plants, one fiberboard plant and four gypsum wallboard plants.
Temple-Inland Building Products facilities are located across eight states, primarily in the southeastern and eastern portions of the United States, with access to five of the top 12 housing markets, according to the announcement.
John Faraci, IP’s chairman and CEO, described the division as “not core to IP’s strategy.” He added: "I am pleased to have reached a deal that recognizes the strength of the business and provides excellent value for IP shareowners."
The transaction is expected to be completed in the first quarter of 2013, subject to various closing conditions, including obtaining required governmental approvals.
IP acquired Temple Inland in February 2012 for approximately $4.5 billion. The deal, which started as an unsolicited bid, became a hostile takeover and was then delayed by government regulators who placed certain conditions on the purchase. IP and Temple-Inland agreed to sell three containerboard facilities to satisfy competitive concerns of the Department of Justice’s Antitrust Division, which was concerned that consumers would end up paying more for containerboard and corrugated boxes.
Headquartered in Memphis, Tenn., International Paper is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company’s North American distribution company. Paper net sales for 2011 were $26 billion. Temple-Inland had 2011 net sales of $4 billion.
CertainTeed inks deal with Canadian steel company
Building materials manufacturer CertainTeed has announced its intention to form a joint venture with Bailey Metal Products of Concord, Ontario, to manufacture suspended ceiling grid in Canada and the United States. Bailey Metal Products is Canada’s largest lightweight steel framing manufacturer and a leading provider of drywall trims and accessories.
“This joint venture will literally open the door for CertainTeed, giving us broad capacity for growth throughout Canada and the United States,” said Graham Thayer, VP and general manager for CertainTeed Ceilings. “CertainTeed and Bailey represent the perfect marriage of technical expertise and production capacity.”
In the short term, ceiling grid products in Canada will continue to be sold under both the Bailey and CertainTeed brands, with a gradual transition for all grid products to the CertainTeed brand.
Bailey currently offers a large product portfolio of building materials that includes steel framing, drywall trims and accessories, ceiling grid, Comslab composite floor system, and vinyl and paper-faced metal bead. A family-controlled business with operations beginning in 1950, the company has eight facilities in British Columbia, Alberta, Ontario and Quebec.
CertainTeed, headquartered in Valley Forge, Pa., is a subsidiary of Saint-Gobain, one of the world’s largest building products company. Founded in 1904, CertainTeed manufactures a wide range of exterior and interior building products, including roofing, siding, fence, decking, railing, trim, foundations, pipe, insulation, gypsum, ceilings and access covers.
Generac partners with HomeSphere
Generac and HomeSphere have announced a joint agreement to offer Generac’s automatic home standby generators to HomeSphere’s network of residential builders using HomeSphere’s technology-driven solutions.
Generac, based in Waukesha, Wis., joins more than 75 manufacturing brands currently using HomeSphere’s BRI lead-generation and marketing program.
“The BRI program is a powerful tool that allows us to offer even more builders access to home standby generators for their customers,” said Brady Boyd, director of sales, Generac. “As power outages continue to rise in frequency and severity, consumers will continue to demand them to protect their homes.”
BRI is a unique builder rebate management and building product manufacturer lead-generation application, serving the residential construction industry. Manufacturers use the BRI service to open sales channels with home builders and remodeling contractors, gaining access to new accounts and building recognition for their products and services. Builders, on the other hand, use HomeSphere to gain product knowledge and manage their cash-producing rebates.
Founded in 1959, Generac was the first company to engineer affordable home standby generators. Today, its Guardian Series home backup generators are the top-selling home standby generators in the United States.