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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): September 30, 1996
THE MEAD CORPORATION
(Exact name of registrant as specified in its charter)
Ohio 1-2267 31-0535759
(State or Other Jurisdiction (Commission File (I.R.S. Employer
of Incorporation) Number) Identification No.)
MEAD WORLD HEADQUARTERS
COURTHOUSE PLAZA NORTHEAST
DAYTON, OHIO 45463
(Address of principal executive offices)
937-495-6323
Registrant's telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report)
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Item 5. Other Events.
The Mead Corporation (the "Company") announced on September 30, 1996
that it has signed a definitive agreement to acquire an integrated coated
paper mill located in Rumford, Maine, from Boise Cascade for approximately
$650 million in cash. The Rumford mill, which will be integrated into
Mead's Publishing Paper division, has 667,000 acres of woodlands. Mead
intends to finance the acquisition with debt.
Attached hereto as Exhibit 1.1 is a press release dated September
30, 1996 detailing the above, which is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
1.1 Press release dated September 30, 1996.
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.
Date: October 11, 1996
THE MEAD CORPORATION
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(Registrant)
By: WILLIAM R. GRABER
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W. R. Graber
Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit
Number
1.1 Press release dated September 30, 1996.
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Exhibit 1.1
Strategic Acquisition Strengthens Mead's Position
as a Leading Producer of a Full Range of Coated Papers
DAYTON, OH. September 30, 1996 -- The Mead Corporation (NYSE:MEA)
today announced it has signed a definitive agreement to acquire an
integrated coated paper mill located in Rumford, Maine, from Boise Cascade
for approximately $650 million in cash subject to the required government
review and regulatory approvals. The addition of the Rumford mill, which
primarily manufactures coated paper and has an annual paper and pulp
production capacity of 600,000 tons, will strengthen Mead's position as
one of the country's leading producers of a full range of coated papers.
The Rumford mill also manufactures high-value specialty paper grades and
some commodity grades.
Mead anticipates that the acquisition will be completed before year-
end and that it will be accretive to its 1997 earnings.
"The Rumford mill is an outstanding and exciting strategic
acquisition for Mead," said Steven C. Mason, Chairman and Chief Executive
Officer. "Coated paper is a targeted growth area for Mead -- we know this
segment well, have invested heavily in it, and have been successful. The
mill complements Mead's two existing coated paper mills, offers important
synergies and reinforces Mead's position as a high-quality, low-cost
producer of value-added paper."
The Rumford mill, which will be integrated into Mead's Publishing
Paper division, has 667,000 acres of woodlands, modern equipment, an
experienced workforce, and an excellent quality reputation. Mead intends
to finance the acquisition with debt, raising Mead's total debt to capital
ratio after the acquisition to approximately 38 percent, well within the
Company's stated objectives.
Mead's two other coated paper mills are located in Escanaba,
Michigan, and Chillicothe, Ohio. Said Mason, "With the Rumford mill, Mead
and its customers will benefit from increased flexibility made possible by
multiple manufacturing locations and a full range of quality coated
papers. Also, we believe we can improve market access for Rumford's
output and benefit from clear opportunities to improve productivity across
our entire coated paper system." Mason added that Mead plans to grow the
Rumford mill's specialty paper business as well.
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The coated paper market is estimated to be growing at approximately
4 percent per year and currently accounts for approximately 10 percent of
worldwide paper and paperboard consumption. Typical coated paper products
include magazines, books, catalogs, directories, annual reports,
yearbooks, advertising brochures and labels. Coated papers typically sell
at a premium to other commodity paper grades due to higher value-added
content. In 1995, earnings from Mead's paper segment were $330 million on
$1.46 billion sales. Mead produced more than 650,000 tons of coated paper
in 1995.
The Mead Corporation is a $5 billion forest products company
celebrating its 150th anniversary in 1996. It produces coated papers for
periodicals, catalogs, books, and commercial printing; carbonless copy
paper; uncoated and specialty papers; and pulp and wood products. In the
packaging and paperboard sector, the Company produces coated paperboard;
beverage and food packaging; and corrugating medium and cartons. Mead is
a major manufacturer of paper-based school and office products. Mead's
Zellerbach division delivers value-added products and services for
printing, packaging and industrial supply markets.
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