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|Rock-Tenn Company Announces the Acquisition of the Minority Interest of GSD Packaging, LLC|
NORCROSS, Ga.--(BUSINESS WIRE)--Jan. 24, 2007--Rock-Tenn Company (NYSE:RKT) announced today that it has acquired the remaining 40% minority interest in GSD Packaging, LLC that it did not own for $32 million, giving Rock-Tenn sole ownership of the company.
GSD Packaging manufactures the Fold-Pak(R) food pails and Bio-Pak(R) and SMARTServ(TM) food containers in its three plants located in California, Georgia and Pennsylvania. Fold-Pak(R) food pails are the preeminent takeout package used by Chinese restaurants in the United States. Bio-Pak(R) containers are the premium paperboard package for the foodservice and grocery industries. SMARTServ(TM) containers are grease and leak resistant and can package a wide variety of food products. Rock-Tenn acquired its original 60% interest in GSD as a result of its acquisition of the Gulf States paperboard and packaging business in June 2005.
Rock-Tenn Company Chairman and Chief Executive Officer James A. Rubright stated, "We are very pleased with the acquisition of the minority interest in GSD. This business has continued to produce very good results since we acquired it as part of the 2005 acquisition of Gulf States. GSD is an important customer of our Demopolis bleached paperboard mill and makes versatile paperboard based food containers serving a very broad customer base. We expect this acquisition to be immediately accretive to earnings."
Rock-Tenn Company provides a wide range of marketing and packaging solutions to consumer products companies at low costs, with net sales of approximately $2.1 billion and operating locations in the United States, Canada, Mexico, Argentina and Chile. The Company is one of North America's leading manufacturers of packaging products, merchandising displays and bleached and recycled paperboard.
Statements herein regarding, among others, the accretive impact of the acquisition and anticipated future earnings constitute forward-looking statements within the meaning of the federal securities laws. Such statements are subject to certain risks and uncertainties that could cause actual amounts to differ materially from those contained in any forward-looking statement. With respect to these statements, the Company has made assumptions regarding, among other things, expected economic conditions, competitive conditions in our businesses, adverse actions of our customers, our competitors and suppliers, expected volumes and price levels of purchases by customers as well as raw material and energy costs. The forward-looking statements are subject to certain risks including, among others, that the foregoing assumptions are inaccurate. Such risks are more particularly described in the Company's filings with the Securities and Exchange Commission, including under the captions "Business -- Forward-Looking Information" and "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the most recently ended fiscal year. Management believes its estimates are reasonable; however, undue reliance should not be placed on such estimates, which are based on current expectations. The information contained herein speaks as of the date hereof and the Company does not undertake any obligation to update such information as future events unfold.
CONTACT: Rock-Tenn Company