SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 10, 1996
JAMES RIVER CORPORATION OF VIRGINIA
(Exact name of registrant as specified in its charter)
Virginia
(State or other jurisdiction of incorporation)
1-7911 54-0848173
(Commission File Number) (IRS Employer Identification Number)
120 Tredegar Street, Richmond, Virginia 23219
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (804) 644-5411
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Item 5. Other Events.
On April 10, 1996, James River Corporation of Virginia
("James River" or the "Company") published a press release
announcing the signing of a definitive agreement for the
sale of the Company's Flexible Packaging Group. James River
will receive gross cash proceeds of $365 million from the
sale, which is expected to be completed by mid-year. A copy
of the press release is filed herewith as Exhibit 99.
Item 7. Financial Statements and Exhibits
(c) Exhibits:
99 Press release dated April 10, 1996, published by the
registrant -- filed herewith.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
JAMES RIVER CORPORATION OF VIRGINIA
By: /s/ Stephen E. Hare
Stephen E. Hare
Senior Vice President,
Corporate Finance & Chief Financial Officer
Date: April 12, 1996
<PAGE>
News Release: Immediate Contact: Richard B. Elder, Media (804) 343-4785
Celeste Gunter, Financial (804) 649-4307
JAMES RIVER CORPORATION TO SELL FLEXIBLE PACKAGING GROUP
TO PRINTPACK INC.
RICHMOND, Va., April 10, 1996 -- James River Corporation announced
today it has signed a definitive agreement with Printpack Inc. of
Atlanta, Ga., for the sale of the company's Flexible Packaging group.
James River will receive gross cash proceeds of $365 million from the
sale, which is expected to be completed by mid-year. The transaction is
subject to normal closing conditions and adjustments.
This agreement follows James River's December announcement of its
intent to sell its Flexible Packaging group, which is part of the
company's Packaging Business. With 1995 sales of approximately $490
million, the Flexible Packaging group includes ten manufacturing
facilities with 2,300 employees. These facilities include: four
lamination and coating plants, located in St. Louis, Mo., Dayton, Ohio,
Shreveport, La., and San Leandro, Calif.; five film and converting
plants, located in New Castle, Del., Orange, Texas, Greensburg, Ind.,
Jackson, Tenn., and Aguascalientes, Mexico; and a rigid plastics
container plant in Williamsburg, Va. Certain pilot plant equipment from
James River's technology center in Milford, Ohio, is also included in the
sale.
Proceeds from the sale are expected to be used to reduce long-term
debt, as part of James River's overall program to focus its business and
improve financial flexibility. Upon the completion of the sale, the
company also expects to record a gain of approximately $.25 per share,
subject to closing adjustments.
"The resin-based Flexible Packaging group is a good fundamental
business with strong competitive positions in a high-growth segment of
the packaging market," said Miles L. Marsh, Chairman and Chief Executive
Officer of James River. "However, this divestiture fits James River's
strategy to focus on its core, paper-based consumer and packaging
businesses. At the same time, this sale represents an important step
toward achieving our 1996 goal of generating at least $500 million from
divestitures to be used for debt reduction."
James River Corporation, headquartered in Richmond, Va., is a
leading marketer and manufacturer of consumer products, packaging, and
business and writing papers. In North America, the company markets
diversified brands such as QUILTED NORTHERN bathroom tissue, BRAWNY paper
towels, DIXIE paper cups and plates, PACESETTER paperboard, QUILT-RAP
sandwich wrap and QWIK WAVE microwave packaging, as well as EUREKA!
recycled copy paper and WORD PRO copy paper. In addition, the company
produces a number of popular European brands such as LOTUS towel and
tissue products. Following this sale, James River will have current
annual sales of approximately $5.5 billion.
