Temple-Inland to separate into three companies

Temple-Inland Inc., which has long been in the front of East Texas landscape, announced Monday, Feb. 26 plans to separate itself into three stand-alone public companies and sell its timberlands.

As part of the breakup, Temple-Inland will retain its corrugated packaging and building products operations, which made up three-quarters of the $5.6 billion in revenue the company reported in 2006.

The company will spin off its financial services business, which owns Guaranty Bank in Texas and California, and its real estate unit, which operates as Forestar Real Estate Group.

The company owns a linerboard mill in Orange; lumber mills in Buna, Diboll and Pineland; and fiberboard and particleboard mills in Diboll.

According to a recent filing the company sent to the Securities and Exchange Commission, the Orange mill employs 222 hourly workers and 88 in maintenance.

Guaranty Bank has two locations in Beaumont - 6210 Phelan Blvd. and 2635 Interstate 10 East; and a Silsbee branch at 645 N. Fifth St.

Billionaire investor Carl Icahn acquired a 6.7 percent stake in Temple- Inland in January and has advocated breaking up the company.

"Each of the three public companies - manufacturing, financial services and real estate - will be well positioned in the marketplace, have an appropriate capital structure and will benefit from greater strategic focus," Kenneth M. Jastrow II, chairman and chief executive, said in a statement.

Temple-Inland also plans to sell off about 1.8 million acres of timberland in Texas, Louisiana, Alabama and Georgia.

Presently, Temple- Inland is the largest private land holder in the state of Texas.