Deltic Timber to Take Control of Del-Tin Fiber

Before you go, we thought you'd like these...
Before you go close icon

On Wednesday, Deltic Timberannounced an agreement to buy out the 50% interest in its Del-Tin Fiber joint venture currently held by International Paper subsidiary  TIN, The effect of this purchase will be to give Deltic 100% ownership of Del-Tin.

Del-Tin manufacturers medium density fiberboard at a plant in El Dorado, Ark. Specific details on the subsidiary's revenues and profitability were not disclosed, but Deltic did let on that it thinks the purchase will be "accretive to Deltic's financial performance."

Deltic will pay $5.2 million in cash, and assume all of TIN's $14.8 million in debt guarantees on local government bonds that were issued in 1998 to finance construction of the Del-Tin Fiber plant. These bonds mature on December 1, 2027.


Investors reacted positively to the announcement, and Deltic shares are up 1.3% in Thursday trading, at $72.17. 

The article Deltic Timber to Take Control of Del-Tin Fiber originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners