Sale might show area some money
Temple-Inland becomes The Campbell Group
By SHARON KERR Staff Writer

Newsboy photo/ Charles Kerr WILD AZALEA CANYON in Newton County is one of the many scenic trails preserved by Temple Inland and open to the public on a limited basis.

With little fanfare, more than 40 percent of Jasper County changed hands last week when Temple-Inland completed its land deal with The Campbell Group Oct. 31.

The immediate impact of this multi-billion dollar deal could mean an increase in cash flow for Jasper Count. Temple- Inland stockholders will receive a one-time dividend bonus on their T-IN common stock. Many current and exemployees bought stock or received stock as bonuses, but company sources do not have figures for how many shares are owned by Jasper residents.

By comparison, the most recent regular quarterly dividend announced by Temple Inland was $.28 per common share, so 1,000 shares would normally yield a dividend of $280. The one-time dividend for the same stock will yield an estimated $10,250.

Campbell bought a total of 1.55 million acres of timberland for $2.38 billion dollars. Of that, 1.136 million acres are in Texas, 338,000 in Louisiana, and 76,000 in Georgia and Alabama.

A joint press release from both companies indicates that the timberlands management and forest industry will continue business as usual. The transaction includes a market-value 20- year fiber supply agreement for pulpwood and 12-year fiber supply agreement for sawtimber, and both are subject to extension. The sale will not affect the manufacturing operations of Temple-Inland.

The transfer of ownership includes field offices in Jasper and Silsbee and the seedling nursery off U.S. Highway 63 West in Jasper County. The Campbell Group will lease office space at the Temple offices in Diboll.

To date, 81 former Temple-Inland employees have been hired by The Campbell Group. According to the joint press release, more than 90 percent of Temple-Inland's forest division employees have accepted positions with either The Campbell Group, Temple-Inland, Forestar, or have elected to retire. (Forestar is the new real estate affiliate of Temple- Inland.)

The Campbell Group has said they will continue to manage and third-party certify the timberlands under the Sustainable Forestry Initiative, a program established by foresters, conservationists and scientists who support sustainable forestry practices.

"The Campbell Group's acquisition of this land allows it to continue its commitment to timberland as a long-term asset and work to ensure the forestlands are managed at the high standards established by Temple-Inland," said John Gilleland, president of The Campbell Group.

"We are now able to combine the highly qualified staff from Temple-Inland with our own expert team as we continue the quality management of these forestlands," said Jerry Brodie, Campbell's managing director of operations.

The Campbell group began in 1981 with five professionals in Oregon and, with this purchase, has grown to more than 250 employees in 21 offices. The company manages more than $4 billion in assets

spread across 13 states.

Temple-Inland reports that the $2.38 billion price is "almost entirely notes due in 2027." In December, they expect to pledge the notes and after taxes and transaction costs, the sale should yield $1.8 billion cash.

"The Company (Temple- Inland) expects to use the majority of these proceeds to pay a special dividend, which is currently estimated to be approximately $1.1 billion, or $10.25 per share, to its common stockholders. The remaining approximately $700 million of the cash proceeds will be used to reduce debt," said an Oct. 31 press release from Temple-Inland.