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Rail News Home M&A

9/20/2007



Rail News: M&A

Boise Cascade to sell Minnesota, Dakota & Western Railway as part of $1.6 billion deal



Aldabra 2 Acquisition Corp. recently reached an agreement to purchase Boise Cascade L.L.C.’s paper, packaging and newsprint divisions for about $1.6 billion. The sale includes Boise Cascade’s Minnesota, Dakota & Western Railway, a four-mile short line that serves paper mills in International Falls, Minn., and Fort Frances, Ontario.

Aldabra will pay $1.3 billion in cash and provide shares of Aldabra common stock to fund the remainder. After the transaction closes later this year, Aldabra plans to change its name to Boise Paper Co.

Boise Cascade has owned the Minnesota, Dakota & Western — which was established in 1910 — since 1965. The short line interchanges with Canadian National Railway Co.

In July 2006, Boise Cascade reached an agreement with the Watco Cos. Inc. to purchase the Minnesota, Dakota & Western. But two months later, the parties agreed to terminate the sale agreement after certain conditions weren’t met within a specified timeframe.


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