RockTenn Takes Over Smurfit-Stone

Smurfit-Stone is no more.

The company at the end of Depot Street, has been bought by RockTenn Co.,of Norcross, GA.

The RockTenn website descibes the company as a "leading producer of paperboard, containerboard and consumer and corrugated packaging."

The company has net sales of approximately $3 billion. It employs about 10,000 people in 90 locations in the U.S., Canada, Mexico, Chile and Argentina.

According to St. Louis Today, the RockTenn and Smurfit-Stone merger happened at the end of May, a week after Smurfit-Stone investors lost a bid to block the $3.5 billion deal.

Stockholders of both companies approved the merger by overwhelming margins, the website said.

According to the Huffington Post, the deal makes RockTenn the second-largest container-board company in North America, with annual sales of more than $9 billion. International Paper is the largest.

St. Louis Today says that the court ruling involved a decision that Smurfit-Stone's directors had acted properly in accepting Rock-Tenn's offer. The former rival company had inreased its bid several times, the website said. 

The complaint had been lodged by Third Point LLC, Royal Capital Management LLC and Monarch Alternative Capital LP, according to St. Louis Today. These groups owned about 9 percent of Smurfit-Stone's shares. They said the deal undervalued Smurfit-Stone.

According to Paper Age, RockTenn and Smurfit-Stone shareholders approved the merger. More than 99 percent of the RockTenn shares, and more than 91 percent of the Smurfit-Stone shares whose holders or representatives voted at a recent shareholder meeting voted for the merger.

The companies said that Smurfit-Stone shareholders will get $17.50 per share. As part of Rock-Tenn's acquisition, Smurfit-Stone directors Timothy J. Bernlohr, Terrell K. Crews and Ralph F. Hake joined Rock-Tenn's board.

Smurfit-Stone had been struggling through bankruptcy for two years, the Huffington Post said. Its CEO, Patrick J. Moore had announced plans to retire at the end of this year. Chief Operating Officer Steven Klinger resigned at the end of 2010.