Boise sold again
By Jim Cox Editor & Publisher

Boise Cascade LLC is selling its paper, packaging and newsprint assets to Aldabra 2 Acquisition Corp. for $1.63 billion in cash and stock. The sale includes the Jackson pulp and paper mill and sheeter operation.

Aldabra will change its name to Boise Paper Company. Boise Cascade, a privately held company, will retain ownership of its wood products and building materials distribution business. Both companies will be headquartered in Boise, Idaho.

Madison Dearborn Partners, a private-equity firm, purchased Boise Cascade in 2004 for about $3.2 billion.

Aldabra, of Rockville, Maryland, was formed with the intention of acquiring a company with an operating business held by a private-equity firm specializing in either leveraged buyouts or venture capital.

Aldabra went public in June at $10 a unit on the American Stock Exchange. It will seek a listing on either the New York Stock or the Nasdaq.

The sale will help Boise Cascade to reduce debt. In addition to the stock transfers, Aldabra will seek to raise approximately $946 million of debt financing to fund the cash portion of the purchase price.

Tom Stephens, Chairman and CEO of Boise Cascade said, "We're excited that Aldabra is buying our Paper, Packaging and Newsprint businesses. Our entire organization in these operations has worked hard to transform their businesses and this is a huge vote of confidence in what the team has built and the future opportunities before them."

Alexander Toeldte will become CEO of Boise Paper Company. He is currently Boise Cascade's executive vice president for the Paper, Packaging and Newsprint businesses.

Jackson Mayor Richard Long said, "This is a positive announcement for the city. I believe the city's revenue received from Boise will continue to increase as the Jackson operation continues to grow. An example is the fourth sheeter recently installed at the converting plant that provides eight additional jobs. I believe the outstanding corporate support for the Jackson operation will continue."

Long is also a sales manager at Boise's Jackson plant.

Boise employs approximately 590 workers at its Jackson plants, according to Marty Parker, the company's local spokesman. He said the change would not have any immediate impact on operations there.

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