News Ticker – June 30, 2010


Smurfit-Stone completes financial restructuring, exits Chapter 11
The Chicago-based paperboard-packaging converting giant successfully completed its financial restructuring and has officially emerged from Chapter 11 as a newly reorganized, publicly traded company that will begin trading on the New York Stock Exchange under the symbol SSCC, effective July 1. “We exit Chapter 11 as a well-positioned industry leader with a healthier balance sheet and improved cost structure,” said Patrick J. Moore, chief executive officer. “We are re-energized, committed to serving the needs of our customers and achieving long-term profitable growth for our shareholders.”

In conjunction with the company’s completion of its financial restructuring, the company announced a new board of directors, including Ralph F. Hake, who has been appointed non-executive chairman of the Smurfit-Stone board of directors. Hake is the former chairman and CEO of Maytag Corp. More info

Multi-Color to acquire European wine/spirits label specialist
The Cincinnati label printer/converter powerhouse expands its “Collotype” Wine & Spirit Label division with the purchase of leading European wine, spirit & olive-oil label converter Guidotti CentroStampa SPA, based in Tuscany, Italy. MCC will acquire 100% ownership of the firm for approximately €50.5 million. The deal is expected to close July 1.

Established in 1977, Guidotti CentroStampa has annual revenues of about €35 million and supplies labels to the Italian, French and Spanish wine markets and the UK and Eastern European spirit markets. MCC’s Collotype has successfully established market leadership in wine labels in the US, Australia and South Africa. With the purchase of Guidotti CentroStampa, MCC will become the only global wine & spirit label specialist with reach into regions with over three quarters of world wine production, MCC says. More info

Gloucester Engineering Corp. files for Chapter 11 bankruptcy protection
The manufacturer of blown- and cast-film extrusion lines hopes the move will enable it to reorganize and return to profitability, reports Modern Plastics Worldwide. The situation is certainly difficult as one of the recession’s lasting effects has been even more aggressive pricing among suppliers bidding for processors’ business. The bankruptcy filing at the company, based in Gloucester, MA, is the latest in a string of moves to balance income with expenses. Last year about 25% of the workforce was let go, bringing it below 200 employees, but even that proved too little to avoid Chapter 11. More info

International Paper completes purchase of SCA Asian operations
With a purchase price of $200 million in cash, IP has finalized its previously announced acquisition of SCA (Svenska Cellulosa Aktiebolaget) Asian packaging operation. “This acquisition strengthens International Paper’s industrial packaging business in China—the largest corrugated market in the world, and it extends our presence in Southeast Asia,” said Paul Brown, president, International Paper Asia. IP’s industrial packaging business in Asia now has 27 plants, including 21 facilities in China, and operations in Thailand, Malaysia, Singapore and Indonesia. More info

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