BOISE, Idaho (AP) — Boise Cascade LLC, which makes wood and paper products, said Friday it agreed to sell its paper, packaging and newsprint segments to Aldabra 2 Acquisition Corp. for about $1.63 billion in cash and stock.
Aldabra confirmed the move in a separate statement, saying it would change its name to Boise Paper Co. and seek a listing on either the New York Stock Exchange or Nasdaq Stock Market.
The company plans to pay about $1.34 billion of the total purchase price in cash. It will seek to raise $946 million in debt financing to fund the purchase.
Aldabra said the businesses it will acquire had revenue of $2.28 billion in the year ended June 30.
Boise Cascade said it would retain its wood products and building materials distribution segments, and use some of the proceeds from the sale to pay down debt.
Alexander Toeldte, the executive vice president at Boise Cascade in charge of the divisions being sold, will take over as chief executive of Boise Paper Co.
The boards of the respective companies have approved the deal, which still requires shareholder and regulatory approvals.