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Boise Cascade Buys OfficeMax For $1.2B
Stock Option Trading Boise Cascade, a wood and paper products maker, agreed yesterday to acquire OfficeMax for nearly $1.2 billion in cash and stock in a deal that creates a larger competitor for leading office products retailers Staples and Office Depot.
Boise Cascade ( BCC) and Panamsat ( SPOT). Both of these models have made gains of around 6% since their introduction.
Currency Day Trading Acquiring OfficeMax, the third- biggest U.S. office products retailer, will more than double the size of Boise Cascade's office products distribution business.
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Financial Software Trading "Clearly, this gains us scale in office solutions," Boise Chairman and Chief Executive George Harad said in a conference call. "It's an excellent fit between complementary businesses."
In the next newsletter, we'll go into more detail about the effects of saturation and how it can affect your selection of input preprocessing. Solution Service Recap The Solution Service is a free service that provides daily trading signals and commentary for a select group of stocks. These models can be used directly as part of your trading strategy or used as examples of how to generate your own winning signals. To access it, simply press the "Update Solution Service" button in the TradingSolutions toolbar. Since the last newsletter February, the NASDAQ and the S&P 500 have lost about 2%. During this time, the Boise Cascade model gained over 10%. Overall, the Solution Service models combined to remain around even. Some of the models causing drawdowns will be replaced in the near future.
Online Stock Trading Company The move comes amid a wave of recent acquisitions after one of the slowest periods for such activity in years.
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Forex Day Trading Under the terms of the deal, Boise Cascade will pay $9 a share for OfficeMax, a 25 percent premium over OfficeMax's closing price of $7.18 a share Friday.
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Financial In Market Yesterday, OfficeMax shares rose $1.42, or 19.78 percent, to $8.60, while Boise shares fell $1.56, or nearly 7 percent, to $21.87.
Stock Trading System Boise Cascade plans to pay 30 percent of the price in cash and 70 percent in stock, the companies said in a statement. The cash amount could increase if the value of Boise Cascade shares drop.
Day Trading Stock Tip The deal already has been unanimously approved by both companies' boards and is subject to customary approvals under antitrust laws and by the shareholders of OfficeMax and Boise Cascade.
Financial Forex Forex Software Harad said he didn't anticipate any antitrust problems because the companies are more complementary than competitive.
Stock Market Trading "We really think this creates a major competitor for Staples and Office Depot and therefore should be beneficial for consumers," Harad said.
Day Lesson Stock Tip Trading The acquisition allows customers of all sizes to come to one supplier, he said.
Financial System Trading "This business combination gives the newly formulated organization the ability to better serve all channels of the office products market from home offices to small businesses to large corporations," Michael Feuer, OfficeMax's co- founder, chairman and chief executive, said in a statement.
Day Trading Future "Clearly, on the retail side of the business, we'd be keeping the OfficeMax brand," Harad said.
Financial Forex Market Trading About half of Idaho-based Boise Cascade's $7.4 billion in revenues comes from selling office products. The acquisition of OfficeMax positions Boise to better compete with Staples, the largest office retailer, and Office Depot, the second-largest chain in the category.
Online Trading Stock And Boise has been shedding jobs to cut costs and lost $27.5 million or 53 cents a share in the first quarter. Boise's stock has fallen 7 percent this year while shares of OfficeMax have gained 44 percent.
Day Trading Software Harad said it's too early to know if jobs cuts would be involved in the acquisition. He said no decision has been made about where to locate the business.
Financial Market Science Cleveland-based OfficeMax sells through nearly 1,000 superstores and via direct mail catalogs and the Internet. It had sales of $4.8 billion in 2002.
Stock Trading Software Boise Cascade is based in Boise, Idaho. Its office products distribution unit, based in Itasca, Ill., had $3.5 billion in sales last year.
Emini Day Trading By M.R. Kropko
Associated Press - 7/15/2003
Topic: Forests & Trees
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