Temple-Inland Monday announced a major restructuring plan intended to transform it into a manufacturing company focused on corrugated packaging and building products.
As part of the sweeping plan, the company will spin off its financial services and real estate operations, and sell some of its timberland.
"Taking advantage of current market conditions, this transformation plan will unlock shareholder value in a very tax efficient manner and provide our shareholders ownership in three outstanding businesses," said Kenneth M. Jastrow, II, chairman and chief executive officer. "Each of the three public companies - manufacturing, financial services and real estate - will be well positioned in the marketplace, have an appropriate capital structure and will benefit from greater strategic focus."
The company said corrugated packaging operating income has improved more than 1,000 percent since 2003, and its building products operation has achieved record earnings each of the past three years.
Temple-Inland's corrugated packaging operation includes five linerboard mills, one corrugating medium mill, and 64 converting facilities. The building products unit includes five lumber mills, four gypsum wallboard plants, five particleboard plants, one fiberboard plant, and two medium-density fiberboard plants.