Temple-Inland board urges shareholders to reject IP offer
The takeover battle for Temple-Inland continues to escalate as the Austin, Texas, wood products supplier issued a statement today urging its stockholders to reject an unsolicited offer from International Paper (IP). Temple-Inland’s board of directors voted unanimously to reject the $30.60-per-share offer because it undervalues the company. The timing of the offer is also “extremely opportunistic,” the company said in its official recommendation.
“Housing markets are at historically low levels, temporarily depressing the value of our building products operations,” the board wrote. “IP is attempting to take advantage of our stockholders by moving to grab Temple-Inland at a bargain price at a time when there is little or no market value being ascribed to building products.”
International Paper will finance the $3.7 billion deal with $1.5 billion cash and the rest in borrowings. The company is interested in Temple-Inland’s corrugated packaging operations, which consist of seven mills and 58 converting facilities. Temple-Inland also makes a wide range of wood-based building materials.
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Barton Supply acquired by investment group
An investment group led by Paul Hylbert, former CEO of ProBuild Holdings, and Boreas Advisors have announced the acquisition and recapitalization of Barton Supply.
Barton Supply is a fabricator and distributor of structural and reinforcing steel products and accessories with locations in Aurora, Colorado Springs and Fort Collins, Colo., serving general contractors, foundation and framing sub-contractors, and home builders.
Over the past five decades, Barton Supply has grown to three locations and added bending, cutting and welding capability to fabricate reinforcing steel products, as well as structural steel beams, posts and columns.
“We are pleased to be partnering with Barton Supply as a committed, long-term investor and, particularly, that both Don and Scott Barton will be a part of the key management team, as well as fellow investors,” Hylbert said. “Scott will continue to head our sales and marketing efforts as the VP sales, and Don will lead manufacturing and distribution as the VP operations.”
Boreas Advisors partners Steve Swinney and Brian Cleveringa will take over the roles of CEO and CFO, respectively for the company.
Hylbert and Boreas Advisors partnered in 2011 to invest in housing- and building products-related companies with a long-term, build-and-grow strategy.
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Builder rescinds drywall replacement offer
An article in the Tampa Tribune reported that a Tampa builder who agreed to move families out of homes built with toxic Chinese drywall and make the necessary repairs has now rescinded the offer.
The newspaper’s cover story interviewed two residents of Sabal Pointe, a community built by Rottlund Homes, who discovered tainted drywall and other related damage in their homes last year. Rottlund Homes sent them letters promising to replace the drywall and pay their living expenses during the repairs. But the residents were eventually informed that the builder was unable to secure financing and did not know when it could fix the homes.
Jeff Paskert, an attorney for the builder, told the Tampa Tribune that Rottlund’s insurance company covered repairs on some of the builder’s Chinese drywall homes but not all, including the two residents in question.
Rottlund recently sent letters saying it will not be able to replace the drywall, the paper said, but is still building homes in the Sabal Pointe development.
It seems like a case of an
It seems like a case of an irresponsible builder. Though I appreciate that he did make the effort to try to find homes and financing for the customers with the tainted drywall, it just feels like not enough is being done. The customers are the ones at the losing end, having a building with tainted drywalls and no way to solve the problem.