Temple-Island to acquire Gaylord Container for 0.09 times revenue

The Deal: Temple-Inland Inc. has agreed to purchase Gaylord Container Corp. for $100 million in cash. According to terms of the deal, Temple-Inland will also assume $686 million in Gaylord debt.

Discussion: Gaylord Container makes brown paper packaging products used to hold food and beverages, agricultural products, electronics and other goods. Gaylord produces containerboard and unbleached kraft paper at its three mills in Arkansas, California and Louisiana. These products are then sent to one of Gaylord's 26 converting facilities located throughout the United States where they are converted into corrugated boxes and sheets, multiwall bags and retail bags. Temple-Inland produces paper products such as corrugated packaging and point-of-purchase displays. Temple-Inland also operates a Financial Services Group that includes Guaranty Federal Bank and its roughly 155 branches in Texas and California. Another subsidiary, Temple-Inland Forest Products, produces lumber, particleboard, gypsum wallboard and other building materials, and manages 2.2 million acres of timberland in Alabama, Georgia, Louisiana, and Texas.

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