JAMES RIVER, FORT HOWARD AGREE TO MERGE Creating a Preeminent Consumer Products Company NEW YORK -- May 5, 1997 -- James River Corporation (NYSE:JR) and Fort Howard Corporation (NASDAQ:FORT) announced today that they have signed a definitive merger...Merger Agreement • May 5th, 1997 • Fort Howard Corp • Paper mills
NEW YORK -- May 5, 1997 -- James River Corporation (NYSE:JR) and Fort Howard Corporation (NASDAQ:FORT) announced today that they have signed a definitive merger agreement creating a preeminent worldwide consumer products company with a strong competitive position and outstanding prospects for growth. The new company, which will be named Fort James Corporation, will have annual sales in excess of $7 billion. Under the agreement, shareholders of Fort Howard will receive 1.375 shares of Fort James common stock for each share of Fort Howard common stock. This represents a per share value of $42.45 and a total value of $5.8 billion, including the assumed Fort Howard debt, based on the James River closing stock price on May 2 of $30.875. Shareholders of James River will retain their current number of shares. Excluding non-recurring items, the merger is expected to be slightly accretive to pro forma 1997 earnings, without anticipated synergies, and accretive to 1998 earnings by approximately
