Smurfit-Stone Closes On Sale Of Its Conxumer Packaging Division

Chicago, IL — Smurfit-Stone Container Corporation has announced that it has completed the previously announced sale of its Consumer Packaging division to a company formed by Texas Pacific Group, for approximately $1.04 billion.

"Closing on the sale of our Consumer Packaging division represents another major achievement in the execution of our strategic plan. Net proceeds from the sale will be applied to debt reduction, providing Smurfit-Stone the additional financial flexibility to execute our strategic initiatives. I am pleased with the value we received for this operation and our ability to quickly conclude the transaction," said Charles A. Hinrichs, senior vice president and chief financial officer.

The sale will result in a pre-tax gain of approximately $170 million and an after-tax loss of approximately $4 million, subject to the finalization of certain post-closing adjustments. The after-tax loss is the result of a provision for income taxes that is higher than the statutory income tax rate due to the nondeductibility of goodwill. The taxable gain on the sale will be substantially offset by existing net operating loss carry forwards.

"We extend our best wishes to our consumer packaging colleagues in their new endeavor. With this move, Smurfit-Stone will focus on our core business, allowing us to provide exceptional value to our customers through leveraging our market leading corrugated operations and award-winning innovative packaging solutions," concluded Patrick J. Moore, chairman and chief executive officer.

SOURCE: Smurfit-Stone Container Corporation