Date: Fri 11-Dec-1998

Publication: Bee

Author: ANDYG

Quick Words:

Union-Camp-Whitney-Rand-Kraft

Full Text:

Merger Plans Won't Affect Local Factory Purchase

BY ANDREW GOROSKO

Rand-Whitney Group LLC's pursuit to purchase Union Camp's Edmond Road

corrugated container factory won't be affected by International Paper's plans

to buy out Union Camp Corporation, according to a Rand-Whitney spokesman.

Rand-Whitney spokesman Edwin Davis said Thursday International Paper's planned

merger with Union Camp Corporation is entirely separate from Rand-Whitney's

interest in buying the Edmond Road factory.

In presenting his proposal to bring the New England Patriots professional

football team to a new home in Hartford, team owner Robert Kraft told members

of the state legislature Wednesday his commitment to Connecticut is evidenced

by Rand-Whitney's plans to buy the Edmond Road factory. Mr Kraft also is

Rand-Whitney's president.

The town's Water Pollution Control Authority (WPCA) recently tentatively

endorsed Rand-Whitney's proposal to extend a municipal sewer to the Edmond

Road factory.

Mr Davis stressed Rand-Whitney's negotiations to buy the Edmond Road factory

are separate from the International Paper-Union Camp merger. Rand-Whitney

would use the building for the same purpose as Union Camp has used it.

International Paper and Union Camp Corporation plan to merge in a tax-free

stock-for-stock exchange. Union Camp and International Paper are diversified

forest products companies with $4.4 billion, and $20.1 billion, respectively,

in 1997 net sales. The merger transaction, which is valued at $6.6 billion

including the assumption of debt, is subject to approval by International

Paper and Union Camp shareholders, as well as by federal regulatory agencies.

The merger is expected to close at the end of March, according to Union Camp.

Union Camp Corporation announced last spring it would be closing and

liquidating the assets of its local container plant because of "unfavorable

economic and market conditions."

The plant, which has employed about 120 people, manufactures corrugated

packaging, commonly known as cardboard boxes, and graphic displays such as

those used in stores to promote products.

The 130,000-square-foot plant includes paper cutting and packaging equipment,

a warehouse and shipping operation, and a sales force.