Watch These Four Stocks On Rock-Tenn's (RKT) Takeover Of Smurfit-Stone (SSCC)

January 24, 2011 8:37 AM EST
Over the weekend, Rock-Tenn Co. (NYSE: RKT) announced plans to acquire Smurfit-Stone Container Corp. (Nasdaq: SSCC) for $35 per share in cash and stock, or a 27% premium to Friday's' close.

Rock-Tenn is paying 6.1X Smurfit-Stone annualized 4Q10 EBITDA of $820 million.

The takeover news should have positive implications for other containerboard producers.
  • International Paper Co. (NYSE: IP) trades at 5.76 EV/EBITDA
  • Temple-Inland Inc. (NYSE: TIN) trades at 7.23 EV/EBITDA
  • Packaging Corp. of America (NYSE: PKG) trades at 10.77 EV/EBITDA
  • Boise Inc. (NYSE: BZ) trades at 4.43 EV/EBITDA


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