Boise buys OfficeMax for $1.2 billion

Boise Cascade Corp. has agreed to acquire retailer OfficeMax Inc., including its more than 900 office supply superstores for $1.215 billion in cash and stock, in a move that would more than double the size of its Boise Office Solutions distribution business to approximately $8.3 billion in sales. The deal also gives Boise an important new distribution channel through OfficeMax -the-third largest office supply superstore chain behind Staples Inc. and Office Depot-and a foothold in the consumer and home office market. Boise Office Solutions primarily sells direct to large business accounts.

As a result, Boise also said it has hired Goldman Sachs & Co. to evaluate strategic alternatives that may lead to the sale of all or part of its paper manufacturing and building products businesses. About 20% of Boise's sales would come from making paper and lumber after the OfficeMax purchase is complete, assuming those businesses aren't sold.

The deal has been unanimously approved by the boards of directors of both companies and is subject to shareholder approval and review by the U.S. Justice Department. Boise is the fourthlargest U.S. producer of uncoated freesheet office and copy paper, with over 1. 5 million tons of annual production and $1.9 billion of sales.