Smurfit-Stone Container/Rock-Tenn Co.
On January 23, 2011, Smurfit-Stone Container Corp. (Nasdaq: SSCC) and Rock-Tenn Co. (NYSE: RKT) announced that they have entered into an agreement whereby Smurfit-Stone will become a wholly owned subsidiary of RockTenn.
Under the agreement RockTenn will pay an aggregate consideration, consisting of 50% cash and 50% RockTenn stock, valuing Smurfit-Stone at $35 per share, or $3.5 billion total.
Smurfit-Stone stockholders will be entitled to receive 0.30605 shares of RockTenn common stock and $17.50 in cash. In addition to the equity consideration, RockTenn will assume Smurfit-Stone’s net debt and pension liabilities.
Closing is expected in Q211.
Wells Fargo Securities acted as exclusive financial advisor to RockTenn and King & Spalding LLP acted as legal counsel. Smurfit-Stone’s financial advisor was Lazard and its legal advisor was Wachtell, Lipton, Rosen & Katz.
Under the agreement RockTenn will pay an aggregate consideration, consisting of 50% cash and 50% RockTenn stock, valuing Smurfit-Stone at $35 per share, or $3.5 billion total.
Smurfit-Stone stockholders will be entitled to receive 0.30605 shares of RockTenn common stock and $17.50 in cash. In addition to the equity consideration, RockTenn will assume Smurfit-Stone’s net debt and pension liabilities.
Closing is expected in Q211.
Wells Fargo Securities acted as exclusive financial advisor to RockTenn and King & Spalding LLP acted as legal counsel. Smurfit-Stone’s financial advisor was Lazard and its legal advisor was Wachtell, Lipton, Rosen & Katz.
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