Blue Ridge Paper Company
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Blue Ridge Paper Products is one of America's largest producers of packaging for milk cartons and produces a variety of papers for envelopes, cups and other uses. The North Carolina manufacturer operates a pulp and paper mill and four packaging plants employing more than 2000 workers.
From its corporate headquarters and original manufacturing base in the Blue Ridge Mountains of North Carolina, Blue Ridge Paper Products makes a wide range of paper, board, and packaging products. Its paper products include envelope, covering kraft, forms, offset, and specialty papers. The company's paperboard includes polycoated and uncoated versions. Blue Ridge Paper Products also makes gable top and folding forms of packaging.
The paper manufacturer is 45% owned by its employees through an employee stock ownership plan (ESOP). US private equity fund KPS Special Situations owns the balance. The company also has operations in Georgia, Iowa, Ohio, and Virginia.
Blue Ridge has posted losses for the last five years. According to filings with the US Securities and Exchange Commission, the unlisted company incurred a net loss of $US1.4 million in 2006, an improvement on a $US20.7 million loss in 2005.
On 28 March 2007 it was reported that the company had entered into talks with New Zealand billionaire Graeme Hart about a possible sale of the company to Mr Harts investment company Rank Group. Blue Ridge said in a statement that the takeover talks were "preliminary" and "there can be no assurance that a definitive agreement will be reached". Analysts estimate Blue Ridge could be worth between $US400 and $US450 million based on a multiple of less than one times annual sales. The company posted a 12 per cent rise in net sales to $US571 million in 2006.
Mr Hart is already active in the paper and packaging sector, bidding US$2.3 billion for Swiss packaging group SIG in February 2007, which he seeks to add to Carter Holt Harvey and the US-based Evergreen Packaging.
