Harry E. Gould, Jr., Chairman and President of Gould Paper Corporation, New York City, announced today that effective April 30, 2010 it will become a 51% subsidiary of Japan Pulp & Paper (U.S.A.) Corp. (JPP), a wholly-owned subsidiary of JPP (Tokyo), which is listed on the Tokyo Stock Exchange. JPP (Tokyo) traces its history back to 1845. Mr. Gould stated that the sale of the company had been his objective within the next five years and, fortunately, the right opportunity arrived sooner rather than later. The purchase represents an Enterprise Value for Gould Paper in excess of $100 MM today. JPP plans to purchase the remaining 49% of equity in April 2015.
From the perspective of JPP, it represented an opportunity to take a major step forward implementing its long-term business investment strategy, which has been designated Innovation JPP 2020. This strategy is designed to identify increased investment in offshore management resources and the expansion of overseas business activities as key corporate goals to be achieved by the year 2020. JPP has already established 21 strategic locations throughout China and the greater Asian region, which includes the wholesale trade of paper and paperboard products, the sale of new materials used in the production of recycled paper products and the manufacture and production of household paper products. In addition, JPP sells printing and communication papers as well as specialty papers through their offices in Los Angeles, Atlanta, Mexico City, Düsseldorf, Moscow and Sydney, Australia.
Gould Paper, established in 1924, is one of the quartet of largest paper merchants in the U.S.A., with a vast global reach. Gould has distribution facilities in Edison, New Jersey; Miami and Dallas; as well as an additional 33 outside warehouses across the U.S. In addition, Gould maintains 16 sales offices throughout the country in addition to sales offices in the U.K., Helsinki, Paris, Auckland, Glasgow, Moscow, Shanghai, Manila and Hong Kong. Gould also has representative offices in Dubai, Chennai (India), Istanbul; Taipei, Melbourne, Sao Paulo, Lima, Buenos Aires, Santiago, Costa Rica and Panama.
Mr. Gould further stated that there is almost no overlap with JPP with respect to suppliers and customers. This will allow the two companies to "cross-pollinate" supply sources and take advantage of the growing "global" mind-set of the major international corporations. In short, the combination brings an even higher "value-add" quotient to both companies’ supplier and customer base.
With respect to human resources, all Gould personnel and managers will continue in their existing positions. In addition, Mr. Gould, Carl Matthews (Gould’s Chief Financial Officer) and several other key managers will continue in their respective positions for a minimum of five years. Mr. Gould added that with JPP’s capital base, Gould’s expansion through acquisition will accelerate in both the foreign and North American markets.
Finally, Mr. Gould stated that Innovation JPP 2020 makes a unique alignment with Gould’s historically stated objectives of world-wide growth.
