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{{Short description|Former paperboard and packaging company}}
{{For|the building|Smurfit-Stone Building}}
{{For|the building|Smurfit-Stone Building}}
{{More citations needed|date=July 2012}}


{{Infobox company
<TABLE BORDER="1" ALIGN="right" CELLPADDING="5" CELLSPACING="0">
| name = Smurfit-Stone Container Corporation
<TR><TH COLSPAN="3" style="background:#efefef;">Financial Information
| logo = Smurfit-Stone Logo.JPG
<TR><TH>&nbsp;<TH>2007<TH>2006<TH>2005</TR>
| hq_location_city = {{ubl|[[Creve Coeur, Missouri]]|[[Chicago, Illinois]]}}
<TR><TD>Total Revenue (US$M)<TD>7,420<TD>7,157<TD>6,812
| hq_location_country = United States
</TABLE>
| parent = [[Rock-Tenn]] (from 2011)
[[Image:Smurfit-Stone Logo.JPG|thumb|300px|Smurfit-Stone logo]]
| founded = {{start date and age|1998|11}}
| predecessors = {{ubl|[[Smurfit Kappa|Jefferson Smurfit Corporation]]|Stone Container Corporation}}
}}


'''Smurfit-Stone Container Enterprises, Inc.''' ({{NYSE|SSCC}}), formerly '''Smurfit-Stone Container Corporation''' is a global [[pulp and paper industry|paperboard and paper-based packaging]] company based in [[Creve Coeur, Missouri]], and [[Chicago, Illinois]]. It has approximately 21,000 employees. In 2007, Smurfit-Stone was ranked 13 in [[PricewaterhouseCoopers]]' "Top 100" [[forest]], [[paper]], and [[packaging]] companies in the world (ranked by sales revenue).<ref name=Price>{{cite conference
'''Smurfit-Stone Container Corporation''' was a global [[pulp and paper industry|paperboard and paper-based packaging]] company based in [[Creve Coeur, Missouri]], and [[Chicago, Illinois]], with approximately 21,000 employees.<ref>{{Cite web|url=http://www.nndb.com/company/577/000098283/|title=Smurfit-Stone Container Corporation|website=www.nndb.com|access-date=2017-05-25}}</ref> In 2007, Smurfit-Stone was ranked 13 in [[PricewaterhouseCoopers]]' "Top 100" [[forest]], [[paper]], and [[packaging]] companies in the world as ranked by sales revenue.<ref name=Price>{{cite conference |first=Global Forest Paper & Packaging |last=PriceWaterhouseCoopers |title=Growth - Global Forest, Paper & Packaging Industry Survey 2007 |publisher=[[PricewaterhouseCoopers]] |date=2007-08-01 |url=http://cfodirect.pwc.com:80/CFODirectWeb/Controller.jpf?ContentCode=FSAE-75LQWS&ContentType=Content |accessdate=2009-01-27}}</ref> The company was also among the world's largest [[paper recycling|paper recyclers]].
| first = Global Forest Paper & Packaging
| last = PriceWaterhouseCoopers
| authorlink =
| coauthors =
| title = Growth - Global Forest, Paper & Packaging Industry Survey 2007
| booktitle =
| pages =
| publisher =[[PricewaterhouseCoopers]]
| date = 2007-08-01
| location =
| url =http://cfodirect.pwc.com:80/CFODirectWeb/Controller.jpf?ContentCode=FSAE-75LQWS&ContentType=Content
| doi =
| id =
| accessdate = 2009-01-27 }}</ref> The company is also among the world's largest [[paper recycling|paper recyclers]].
==History==
{{advert|section}}
===Introduction===
Smurfit-Stone Container Corporation (Nasdaq: SSCC) is the industry’s leading integrated manufacturer of paperboard and paper-based packaging. The company is the largest North American producer of containerboard, [[corrugated fiberboard| corrugated container]]s, [[paper bag|multiwall and specialty bags]], and clay-coated recycled [[paperboard|boxboard (CRB)]]. It is also a leading producer of [[solid bleached board|solid bleached sulfate paperboard (SBS)]], [[folding carton]]s, flexible packaging, labels and point-of-purchase displays. SSCC is one of the world’s largest paper recyclers, a key raw material for its products.


[[Rock-Tenn]] bought the company in a $3.5 billion deal that closed in May 2011.<ref>Bryant, Tim, [http://www.americanchronicle.com/articles/yb/159661137 Rock-Tenn, Smurfit-Stone shareholders agree to merger], ''[[St. Louis Post-Dispatch]]'', May 28, 2011.</ref> Rock-Tenn is now known as Smurfit [[WestRock]].
As North America’s largest paperboard packaging company, Smurfit-Stone continues to identify developing retail trends, creating innovative packaging concepts and speeding them to market. In the process, Smurfit-Stone is changing customer perceptions of what packaging can do and what the company can deliver.


==Financial performance==
Smurfit-Stone’s production capabilities and innovation form the broadest product range of any paper-based packaging producer and the ability to meet the growing demand for value-added packaging.
{| class="wikitable"
|-
===History===
! COLSPAN="4" | Financial Information
SSCC was formed in November 1998, with the merger of Jefferson Smurfit Corporation (JSC) and Stone Container Corporation (Stone). JSC’s roots go back to 1974, when Dublin, Ireland-based Jefferson Smurfit Group (JSG) acquired partial interest in Time Industries, a Chicago-based paper and packaging company. JSG established a major presence in the United States with the 1981 acquisition of the Alton Box Board Company and the 1982 acquisition of Diamond International’s packaging operations. In 1983, JSG’s U.S. operations reorganized. The majority of these operations became subsidiaries of JSC. JSC went on to establish a leadership position in the U.S. paper and packaging industry with its 1986 acquisition of 50 percent of Container Corporation of America (CCA) from Mobil Corporation. Morgan Stanley Leveraged Equity Fund II (MSLEF II) purchased the other half of CCA. JSC restructured as a privately held company in 1989, jointly owned by JSG and MSLEF II. As part of the restructuring, JSC acquired the remainder of CCA. In 1994, JSC recapitalized as a publicly traded company.
|-
! &nbsp;
! 2005
! 2006
! 2007
|-
| Total Revenue (US$M)
| 6,812
| 7,157
| 7,420
|}


==History==
Stone Container was founded in 1926 as J.H. Stone and Company. In 1945, it incorporated under the name Stone Container Corporation. In the 1950s, Stone expanded outside of Chicago, buying and building corrugated container plants in Pennsylvania, Ohio, Indiana, and Michigan. The company acquired facilities from Continental Group in 1983 and acquired additional facilities from Champion International in 1986.
[[File:Smurfit Stone Frenchtown Montana 9.jpg|thumb|175px|right|Smurfit-Stone, [[Frenchtown, Montana]]]]
SSCC was formed in November 1998, with the merger of [[Smurfit Kappa|Jefferson Smurfit Corporation]] (JSC) and Stone Container Corporation (Stone). JSC’s roots go back to 1974, when [[Dublin]], [[Ireland]]-based [[Smurfit Kappa|Jefferson Smurfit Group]] (JSG) acquired partial interest in Time Industries, a Chicago-based paper and packaging company. JSG established a major presence in the United States with the 1981 acquisition of the Alton Box Board Company and the 1982 acquisition of Diamond International’s packaging operations. In 1983, JSG’s U.S. operations reorganized and the majority of these operations became subsidiaries of JSC. JSC went on to establish a leadership position in the U.S. paper and packaging industry with its 1986 acquisition of 50 percent of [[Container Corporation of America]] (CCA) from [[ExxonMobil|Mobil Corporation]].


Morgan Stanley Leveraged Equity Fund II (MSLEF II) purchased the other half of CCA. JSC restructured as a privately held company in 1989, jointly owned by JSG and MSLEF II. As part of the restructuring, JSC acquired the remainder of CCA. In 1994, JSC recapitalized as a publicly traded company.
The merger of JSC and Stone in 1998 brought together two leaders of the paper-based packaging industry. In conjunction with the merger closing, JSG purchased 20 million shares of JSC’s stock from MSLEF II and certain other investors. In May 2000, SSCC acquired St. Laurent Paperboard, Inc. In September 2002, the company acquired MeadWestvaco’s Stevenson, Alabama, containerboard mill and related operations. That same month, JSG privatized and distributed its stake in SSCC. Today, neither JSG nor MSLEF II are stockholders of Smurfit-Stone. In March 2003, SSCC exchanged its European assets for JSG’s 50 percent ownership of Smurfit-MBI, a Canadian packaging company, and $189 million cash. SSCC now owns 100 percent of Smurfit-MBI. As a result of this transaction, SSCC is focused almost exclusively on the North American market.
===Products===
Smurfit-Stone has two reportable business segments. The containerboard and corrugated containers segment accounts for 75 percent of net sales and includes the company’s containerboard mills and corrugated container operations. The consumer packaging segment represents 20 percent of net sales and consists of CRB, folding carton plants, and multiwall and specialty bag operations. It also includes packaging equipment, flexible packaging, tube, and label plants. Other operations include nonreportable segments, which accounts for 5 percent of net sales and primarily consists of recycling operations, including collection centers and brokerage sales offices.


Stone Container was founded in 1926 as J.H. Stone and Company. In 1945, it incorporated under the name Stone Container Corporation. In the 1950s, Stone expanded outside of Chicago, buying and building corrugated container plants in Pennsylvania, Ohio, Indiana, and Michigan. The company acquired facilities from [[Continental Can Company#Continental Group|Continental Group]] in 1983 and acquired additional facilities from [[Champion International Paper|Champion International]] in 1986 and Southwest Forest Industries in 1987.<ref>{{Cite news| issn = 0362-4331| last1 = Phillips| first1 = Stephen| last2 = Times| first2 = Special To the New York| title = COMPANY NEWS; Stone to Purchase Southwest Forest| work = The New York Times| accessdate = 2020-01-19| date = 1987-01-28| url = https://www.nytimes.com/1987/01/28/business/company-news-stone-to-purchase-southwest-forest.html}}</ref> Stone Container sold its forest products division to management in 1996.<ref>{{cite news | url=https://www.nytimes.com/1996/09/13/business/stone-container-sells-forest-products-units.html | title=Stone Container Sells Forest Products Units | newspaper=The New York Times | date=13 September 1996 | last1=News | first1=Bloomberg }}</ref>
==Products and services==
{{advert|section}}
Smurfit-Stone produces a wide selection of paper-based packaging products (many of which are "environmentally sustainable"), including corrugated boxes and protective packaging, corrugated pallets, containerboard, kraft paper, market pulp, packaging equipment, and point of purchase displays.
A few examples of Smurfit-Stone’s environmentally sustainable packaging are:


The merger of JSC and Stone in 1998 brought together two leaders of the paper-based packaging industry. In conjunction with the merger closing, JSG purchased 20 million shares of JSC’s stock from MSLEF II and certain other investors. In May 2000, SSCC acquired St. Laurent Paperboard, Inc. In September 2002, the company acquired [[MeadWestvaco]]’s [[Stevenson, Alabama]], containerboard mill and related operations. That same month, JSG privatized and distributed its stake in SSCC. Later, neither JSG nor MSLEF II were stockholders of Smurfit-Stone. In March 2003, SSCC exchanged its European assets for JSG’s 50 percent ownership of Smurfit-MBI, a Canadian packaging company, and $189 million cash. SSCC later owned 100 percent of Smurfit-MBI. As a result of this transaction, SSCC focused almost exclusively on the North American market.
''-The eight-sided '''META case''', which provides corrugated packaging that utilizes less material while offering improved stacking strength, stronger shelf impact, and other benefits.<ref name="Smurfit-Stone Environmental Report">[http://www.smurfit.com:8080/files/Enviromental_Report_2007.pdf Smurfit-Stone Environmental Report]</ref>''


In May 2008, Smurfit-Stone opened a high-tech corrugated container-producing facility in New Lenox, Illinois.<ref>{{Cite web|url=http://www.csrwire.com/press_releases/14910-Smurfit-Stone-Celebrates-Grand-Opening-of-New-High-Tech-Plant-in-Chicagoland-|title=Smurfit-Stone Celebrates Grand Opening of New High-Tech Plant in Chicagoland – Press Releases on CSRwire.com|website=www.csrwire.com|language=en|access-date=2017-05-25}}</ref> The newer plant was to employ 145 people and supply companies in the pizza, oil lubricants, detergents and household goods, cooking, and health care industries.<ref>[http://www.convertingmagazine.com/article/308471-Smurfit_Stone_opens_new_high_tech_corrugated_plant.php "Smurfit Stone Opens new High-tech Corrugated Plant"] {{webarchive|url=https://web.archive.org/web/20100103115758/http://www.convertingmagazine.com/article/308471-Smurfit_Stone_opens_new_high_tech_corrugated_plant.php |date=2010-01-03 }}. [http://www.convertingmagazine.com Convertingmagazine.com] {{webarchive|url=https://web.archive.org/web/20071207150601/http://www.convertingmagazine.com/ |date=2007-12-07 }}. Accessed May 2010</ref>
''-The '''EnviroShell''', which serves as a recyclable, corrugated alternative to traditional blister packs and includes easily separated and recycled PET inserts. These inserts help lead to EnviroShell’s 89 percent reduction in plastic use compared to the traditional blister packs.<ref name="Smurfit-Stone Environmental Report"/>''


The firm had naming rights to a high-profile building on Chicago's skyline, until it was re-named the [[Crain Communications Building]] in 2012. Adventures in Babysitting with Elisabeth Shue was filmed there.
''-'''RecyclaCorr''' is a fully recyclable product that offers a replacement to wax imbued mediums. It provides strength under both dry and humid conditions and has 100% recycled fiber content. Some common applications of RecyclaCorr include packaging produce, protein, beverages, bakery products, products that sustain freeze/ thaw cycles, and products that require high humidity storage.<ref>[http://www.packaging-online.com/paperboardpackaging/article/articleDetail.jsp?id=429757 Packaging Online] May 31, 2007</ref> ''


==Products==
Smurfit-Stone also provides paper and packaging-related services, which include recycling solutions, packaging research and development, and pulp and paper services.
Smurfit-Stone had two reportable business segments. The containerboard and corrugated containers segment accounted for 75 percent of net sales and included the company’s containerboard mills and corrugated container operations. The consumer packaging segment represented 20 percent of net sales and consists of CRB, folding carton plants, and multiwall and specialty bag operations. It also included packaging equipment, flexible packaging, tube, and label plants. Other operations included nonreportable segments, which accounts for 5 percent of net sales and primarily consists of recycling operations, including collection centers and brokerage sales offices.


On 15 May 2006, the firm reported the definitive sale for $1.04 billion in cash of its Consumer Packaging division to [[Texas Pacific Group]].<ref>[http://whattheythink.com/news/27928-smurfit-stone-container-corporation-announces-sale-its/ whattheythink.com: "Smurfit-Stone Container Corporation Announces Sale Of Its Consumer Packaging Segment To Texas Pacific Group"], 15 May 2006</ref>
==Safety==
{{advert|section}}
Smurfit-Stone has been an industry leader in safety performance since 2001. In 2007, Smurfit-Stone’s U.S. operations had an OSHA recordable case rate of 1.05, the best in company and industry history. This represents an 84 percent improvement in the company’s recordable case rate since the implementation of Smurfit-Stone’s SAFE process in 1995.<ref name="Smurfit-Stone Environmental Report"/>
The SAFE process, which stands for Smurfit-Stone Accident-Free Environment, promotes five core beliefs:


==Bankruptcy and corporate reorganization==
# All injuries are preventable
In early January 2009, [[The Wall Street Journal]] announced that Smurfit-Stone had hired lawyers to plan for a potential bankruptcy filing &ndash; which caused an 83% collapse of Smurfit-Stone's stock price.<ref>{{cite news| url=https://www.wsj.com/articles/SB123197469101583315 | work=The Wall Street Journal | title=Smurfit Says Bankruptcy Is Possible Amid Crunch | date=January 15, 2009 | first1=Jeffrey | last1=Mccracken | first2=Ilan | last2=Brat}}</ref><ref>{{cite news| url=https://www.bloomberg.com/apps/news?pid=20601103&sid=aHLIKOJkvTCo&refer=us | work=Bloomberg | title=Smurfit-Stone Falls as Bankruptcy Filing Seen Likely (Update2) | date=January 15, 2009}}</ref> On January 27, 2009, Smurfit-Stone filed petitions for reorganization under [[Chapter 11, Title 11, United States Code|Chapter 11]] in the [[United States bankruptcy court|U.S. Bankruptcy Court]] in [[Wilmington, Delaware]].<ref>{{cite web|title=Smurfit-Store Container Chapter 11 Petition|url=https://www.pacermonitor.com/view/DRJ5BLA/Smurfit-Stone_Container_Corporation__debke-09-10235__0001.0.pdf|website=PacerMonitor|accessdate=7 June 2016}}</ref><ref name=what>{{Cite news
# Safety is everyone’s responsibility
# Working safely is a condition of employment
# Training employees to work safely is essential
# Safety is good business

==Environmental==
{{advert|section}}
===Air===

Smurfit-Stone sets out to solve sustainable packaging requirements of its customers without threatening the ability of future generations to fill their needs. To ensure this mission is carried out, the company works to reduce its environmental footprint in every way possible.
Smurfit-Stone is a member of the [[Chicago Climate Exchange]] (CCX), committing to achieve greenhouse gas emission reductions of 6 percent below baseline by 2010. The company has also put its Load Max Initiative into place, which reduces green house gas emissions by maximizing trailer usage and thereby placing fewer trucks on the highway.<ref name="Smurfit-Stone Environmental Report"/>
Overall, Smurfit-Stone has reduced its use of fossil fuel by 20% since 1998 and has already met the obligation of CCX Phase I to reduce green house gas emissions by 312,000 tons, a goal that was met by utilizing such practices as the combined heat and power process (CHP) to burn biomass in mills.<ref name="Smurfit-Stone Environmental Report"/>

===Forestry===
Smurfit-Stone is one of the founding members of the '''[[Sustainable Forestry Initiative]]''' (SFI). By subscribing to the SFI Environmental Standards, Smurfit-Stone uses the SFI Certified Sourcing Label. To obtain that label, Smurfit-Stone is required to maintain two-thirds of its raw materials for packaging from SFI-certified sources and must also make efforts to inform landowners on the importance of practicing [[sustainable forestry]].
Smurfit-Stone utilizes a Forest Resources program, which provides high-quality virgin wood fiber to its mills, manages company forestlands (approximately 1 million acres), and maintains a nursery and tree improvement program. The nurseries in this program grow over 24 million pine seedlings annually to replace trees that have been harvested by Smurfit-Stone.

The manufacturing process used by Smurfit-Stone’s kraft paper mills utilizes most parts of trees. Bark and sawdust are used as [[biomass]] fuel for boilers; the debarked tree is processed into fiber, which is refined to make paper; the remaining chemicals are recovered and reused as a source of fuel for the boilers; and the wood residuals that Smurfit-Stone cannot use are sent to third parties who reuse them as biomass fuel or to enrich soil quality.<ref name="Smurfit-Stone Environmental Report"/>

===Recycling===
Smurfit-Stone is also among the leading collectors of recycled paper and non-paper based recovered materials worldwide, operating the world’s largest paper recycling business. In 2007, Smurfit-Stone collected a record 7 million tons of recyclable materials, and annually reuse approximately 45% of collected fiber in Smurfit-Stone mills. Smurfit-Stone has also recently begun using their capabilities to recycle third party wastes such as plastic, metal, and glass.<ref name="Smurfit-Stone Company website">[http://www.smurfit-stone.com Smurfit-Stone Company website] June 2, 2008</ref>

===Sustainability===
In continuing efforts to promote environmental sustainability throughout the industry, Smurfit Stone is a member of the [[World Business Council for Sustainable Development]](WBCSD), an organization that provides a medium for companies to share knowledge and experience, expand sustainable development, and voice company positions on relevant issues. Smurfit-Stone partners with organizations such as the National Council for Air and Stream Improvement, the [[Rocky Mountain Elk Foundation]], the Michigan United Conservation Club, and the Alabama Treasure Forest Association.<ref>''Smurfit-Stone's 2007 Sustainability report</ref>

Smurfit-Stone carries out its business in compliance with the environmental, health, and safety principles of the American Forest and Paper Association. They conduct routine evaluations to confirm the status of this compliance and to monitor their facilities’ environmental management systems.

==Community involvement==
Smurfit-Stone actively takes a role in improving local communities with financial and volunteer-based contributions. In December 2007, Smurfit-Stone Container Company pledged $1 million to the YMCA of Greater St. Louis. They now aim to raise $30 million for the organization by 2009. In March, 2007, Smurfit-Stone provided their company wellness center to the YMCA in West Point, VA. The building is now used to house the Greater West Point Family YMCA. Smurfit-Stone’s recycling division has sponsored American Cancer Society fundraising events for more than 10 years, raising around $1 million to directly benefit the St. Louis Hope Lodge Center. Smurfit-Stone works with several other organizations such as Habitat for Humanity, Project Learning Tree, American Red Cross, United Way, March of Dimes, and Juvenile Diabetes Research Foundation.<ref name="Smurfit-Stone Environmental Report"/>

==Bankruptcy & corporate reorganization==
In early January 2009, [[The Wall Street Journal]] announced that Smurfit-Stone had hired lawyers to plan for a potential bankruptcy filing - which caused an 83% collapse of Smurfit-Stone's stock price.<ref>http://online.wsj.com/article/SB123197469101583315.html</ref><ref>http://www.bloomberg.com/apps/news?pid=20601103&sid=aHLIKOJkvTCo&refer=us</ref> On January 27, 2009, Smurfit-Stone filed petitions for reorganization under [[Chapter 11, Title 11, United States Code|Chapter 11]] in the [[United States bankruptcy court|U.S. Bankruptcy Court]] in [[Wilmington, Delaware]].<ref name=what>{{Cite news
| title = Smurfit-Stone Files Chapter 11
| title = Smurfit-Stone Files Chapter 11
| newspaper =WhatTheyThink
| newspaper =WhatTheyThink
| pages =
| pages =
| year =
| date = 2009-01-27
| date = 2009-01-27
| url =http://members.whattheythink.com/news/newslink.cfm?id=35296 }}</ref>
| url =http://whattheythink.com/news/834-smurfit-stone-files-chapter-11/ }}</ref>


The company's CEO claims Smurfit-Stone was forced to file bankruptcy because of higher operations costs, burdensome debt levels from prior corporate mergers, and weakened demand for packaging caused by a [[Late 2000s recession|global economic recession]].<ref name=what/> Pending court approval, the company hopes to obtain [[Debtor-in-possession financing|debtor-in-possession (DIP) financing]] to continue ongoing business operations, payment of employee wages and benefits, and payment of existing vendor obligations.<ref name=what/>
The company's CEO claims Smurfit-Stone was forced to file bankruptcy because of higher operations costs, burdensome debt levels from prior corporate mergers, and weakened demand for packaging caused by a [[Late 2000s recession|global economic recession]].<ref name=what/> Pending court approval, the company hoped to obtain [[Debtor-in-possession financing|debtor-in-possession (DIP) financing]] to continue ongoing business operations, payment of employee wages and benefits, and payment of existing vendor obligations.<ref name=what/>


==Recent Openings==
==Rock-Tenn buyout==

In May 2009, Smurfit-Stone opened a high-tech corrugated container producing facility in New Lenox, Illinois. The new plant will employ 145 people and supply companies in the pizza, oil lubricants, detergents and household goods, cooking, and health care industries.<ref>[http://www.convertingmagazine.com/article/308471-Smurfit_Stone_opens_new_high_tech_corrugated_plant.php "Smurfit Stone Opens new High-tech Corrugated Plant"]. [http://www.convertingmagazine.com Convertingmagazine.com]. Accessed May 2010</ref>
[[Rock-Tenn]] (NYSE: RKT) bought the company in a $3.5 billion deal that closed in May 2011.<ref>[http://www.bizjournals.com/stlouis/news/2011/05/27/rock-tenn-completes-smurfit-stone.html RockTenn completes Smurfit-Stone acquisition]. ''[[St. Louis Business Journal]]''. May 27, 2011.</ref>


==References==
==References==
{{reflist}}
{{Reflist}}


==External links==
==External links==
*[http://www.smurfit-stone.com/ Smurfit-Stone] Official website
*[https://web.archive.org/web/20070202211619/http://www.smurfit.com:8080/content/ Smurfit-Stone] Official website (archived)


{{Illinois Corporations}}
{{Illinois Corporations}}
{{Authority control}}


[[Category:Companies established in 1998]]
[[Category:Manufacturing companies established in 1998]]
[[Category:Companies formerly listed on the New York Stock Exchange]]
[[Category:Companies formerly listed on the Nasdaq]]
[[Category:Defunct companies based in Chicago]]
[[Category:Packaging companies of the United States]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 2009]]
[[Category:Defunct pulp and paper companies]]
[[Category:Manufacturing companies disestablished in 2011]]
[[Category:Pulp and paper companies of the United States]]
[[Category:Pulp and paper companies of the United States]]
[[Category:Companies listed on NASDAQ]]
[[Category:2011 mergers and acquisitions]]
[[Category:Companies based in Chicago, Illinois]]
[[Category:Defunct manufacturing companies based in Illinois]]
[[Category:Packaging companies]]
[[Category:Companies that have filed for Chapter 11 bankruptcy]]

[[de:Smurfit-Stone Container]]
[[fr:Smurfit-Stone Container]]

Latest revision as of 16:29, 16 July 2024

For the building, see Smurfit-Stone Building.
Smurfit-Stone Container Corporation
Predecessors
FoundedNovember 1998; 26 years ago (1998-11)
Headquarters
,
United States
ParentRock-Tenn (from 2011)

Smurfit-Stone Container Corporation was a global paperboard and paper-based packaging company based in Creve Coeur, Missouri, and Chicago, Illinois, with approximately 21,000 employees.[1] In 2007, Smurfit-Stone was ranked 13 in PricewaterhouseCoopers' "Top 100" forest, paper, and packaging companies in the world as ranked by sales revenue.[2] The company was also among the world's largest paper recyclers.

Rock-Tenn bought the company in a $3.5 billion deal that closed in May 2011.[3] Rock-Tenn is now known as Smurfit WestRock.

Financial performance

[edit]
Financial Information
  2005 2006 2007
Total Revenue (US$M) 6,812 7,157 7,420

History

[edit]
Smurfit-Stone, Frenchtown, Montana

SSCC was formed in November 1998, with the merger of Jefferson Smurfit Corporation (JSC) and Stone Container Corporation (Stone). JSC’s roots go back to 1974, when Dublin, Ireland-based Jefferson Smurfit Group (JSG) acquired partial interest in Time Industries, a Chicago-based paper and packaging company. JSG established a major presence in the United States with the 1981 acquisition of the Alton Box Board Company and the 1982 acquisition of Diamond International’s packaging operations. In 1983, JSG’s U.S. operations reorganized and the majority of these operations became subsidiaries of JSC. JSC went on to establish a leadership position in the U.S. paper and packaging industry with its 1986 acquisition of 50 percent of Container Corporation of America (CCA) from Mobil Corporation.

Morgan Stanley Leveraged Equity Fund II (MSLEF II) purchased the other half of CCA. JSC restructured as a privately held company in 1989, jointly owned by JSG and MSLEF II. As part of the restructuring, JSC acquired the remainder of CCA. In 1994, JSC recapitalized as a publicly traded company.

Stone Container was founded in 1926 as J.H. Stone and Company. In 1945, it incorporated under the name Stone Container Corporation. In the 1950s, Stone expanded outside of Chicago, buying and building corrugated container plants in Pennsylvania, Ohio, Indiana, and Michigan. The company acquired facilities from Continental Group in 1983 and acquired additional facilities from Champion International in 1986 and Southwest Forest Industries in 1987.[4] Stone Container sold its forest products division to management in 1996.[5]

The merger of JSC and Stone in 1998 brought together two leaders of the paper-based packaging industry. In conjunction with the merger closing, JSG purchased 20 million shares of JSC’s stock from MSLEF II and certain other investors. In May 2000, SSCC acquired St. Laurent Paperboard, Inc. In September 2002, the company acquired MeadWestvaco’s Stevenson, Alabama, containerboard mill and related operations. That same month, JSG privatized and distributed its stake in SSCC. Later, neither JSG nor MSLEF II were stockholders of Smurfit-Stone. In March 2003, SSCC exchanged its European assets for JSG’s 50 percent ownership of Smurfit-MBI, a Canadian packaging company, and $189 million cash. SSCC later owned 100 percent of Smurfit-MBI. As a result of this transaction, SSCC focused almost exclusively on the North American market.

In May 2008, Smurfit-Stone opened a high-tech corrugated container-producing facility in New Lenox, Illinois.[6] The newer plant was to employ 145 people and supply companies in the pizza, oil lubricants, detergents and household goods, cooking, and health care industries.[7]

The firm had naming rights to a high-profile building on Chicago's skyline, until it was re-named the Crain Communications Building in 2012. Adventures in Babysitting with Elisabeth Shue was filmed there.

Products

[edit]

Smurfit-Stone had two reportable business segments. The containerboard and corrugated containers segment accounted for 75 percent of net sales and included the company’s containerboard mills and corrugated container operations. The consumer packaging segment represented 20 percent of net sales and consists of CRB, folding carton plants, and multiwall and specialty bag operations. It also included packaging equipment, flexible packaging, tube, and label plants. Other operations included nonreportable segments, which accounts for 5 percent of net sales and primarily consists of recycling operations, including collection centers and brokerage sales offices.

On 15 May 2006, the firm reported the definitive sale for $1.04 billion in cash of its Consumer Packaging division to Texas Pacific Group.[8]

Bankruptcy and corporate reorganization

[edit]

In early January 2009, The Wall Street Journal announced that Smurfit-Stone had hired lawyers to plan for a potential bankruptcy filing – which caused an 83% collapse of Smurfit-Stone's stock price.[9][10] On January 27, 2009, Smurfit-Stone filed petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court in Wilmington, Delaware.[11][12]

The company's CEO claims Smurfit-Stone was forced to file bankruptcy because of higher operations costs, burdensome debt levels from prior corporate mergers, and weakened demand for packaging caused by a global economic recession.[12] Pending court approval, the company hoped to obtain debtor-in-possession (DIP) financing to continue ongoing business operations, payment of employee wages and benefits, and payment of existing vendor obligations.[12]

Rock-Tenn buyout

[edit]

Rock-Tenn (NYSE: RKT) bought the company in a $3.5 billion deal that closed in May 2011.[13]

References

[edit]
  1. ^ "Smurfit-Stone Container Corporation". www.nndb.com. Retrieved 2017-05-25.
  2. ^ PriceWaterhouseCoopers, Global Forest Paper & Packaging (2007-08-01). Growth - Global Forest, Paper & Packaging Industry Survey 2007. PricewaterhouseCoopers. Retrieved 2009-01-27.
  3. ^ Bryant, Tim, Rock-Tenn, Smurfit-Stone shareholders agree to merger, St. Louis Post-Dispatch, May 28, 2011.
  4. ^ Phillips, Stephen; Times, Special To the New York (1987-01-28). "COMPANY NEWS; Stone to Purchase Southwest Forest". The New York Times. ISSN 0362-4331. Retrieved 2020-01-19.
  5. ^ News, Bloomberg (13 September 1996). "Stone Container Sells Forest Products Units". The New York Times. {{cite news}}: |last1= has generic name (help)
  6. ^ "Smurfit-Stone Celebrates Grand Opening of New High-Tech Plant in Chicagoland – Press Releases on CSRwire.com". www.csrwire.com. Retrieved 2017-05-25.
  7. ^ "Smurfit Stone Opens new High-tech Corrugated Plant" Archived 2010-01-03 at the Wayback Machine. Convertingmagazine.com Archived 2007-12-07 at the Wayback Machine. Accessed May 2010
  8. ^ whattheythink.com: "Smurfit-Stone Container Corporation Announces Sale Of Its Consumer Packaging Segment To Texas Pacific Group", 15 May 2006
  9. ^ Mccracken, Jeffrey; Brat, Ilan (January 15, 2009). "Smurfit Says Bankruptcy Is Possible Amid Crunch". The Wall Street Journal.
  10. ^ "Smurfit-Stone Falls as Bankruptcy Filing Seen Likely (Update2)". Bloomberg. January 15, 2009.
  11. ^ "Smurfit-Store Container Chapter 11 Petition" (PDF). PacerMonitor. Retrieved 7 June 2016.
  12. ^ a b c "Smurfit-Stone Files Chapter 11". WhatTheyThink. 2009-01-27.
  13. ^ RockTenn completes Smurfit-Stone acquisition. St. Louis Business Journal. May 27, 2011.
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