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CORPORATE STRATEGY
A new private equity-formed firm stepped in and purchased the paper and board assets of Boise Cascade for $1.625 billion, splitting Boise into two companies. The transaction, which has been approved by Boise's board, is expected to close during first quarter 2008.
It creates a new company called Boise Paper Co (BPC), and leaves as Boise the Boise Cascade building products business.
Acquirer Aldabra 2 Acquisition Corp, which sold its initial public offering on June 22 for about $400 million, is publicly traded and was formed by Terrapin Partners LLC, a private equity company that is similar in nature to Madison Dearborn Partners, which is currently the majority owner of Boise Cascade. Terrapin was founded in 1998.
Aldabra 2 Acquisition is an investment vehicle that allows public investors to invest in areas sought by private equity firms. Aldabra has no current operations but went public with the intention of merging with or acquiring a company...