Smurfit-Stone Container History and Growth Story

Smurfit-Stone Container has a rich history that spans over a century. The company was founded in 1919 by Raymond Smurfit in Ireland.

The company started as a small paper mill but quickly expanded to become one of the largest paper and packaging companies in the world. Smurfit-Stone Container was formed in 2004 through the merger of two companies, Smurfit Group and Stone Container Corporation.

This merger brought together two companies with a combined history of over 150 years of experience in the paper and packaging industry.

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Smurfit-Stone Container was formed in November 1998 through the merger of Jefferson Smurfit Corporation (JSC) and Stone Container Corporation.

The roots of JSC go back to 1974 when Dublin, Ireland-based Jefferson Smurfit Group (JSG) acquired a partial interest in Time Industries, a Chicago-based paper and packaging company. JSG established a major presence in the United States through a series of shrewd acquisitions of financially troubled paper companies.

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JSG's U.S. operations reorganized in 1983, with the majority of these operations becoming subsidiaries of JSC. JSC went on to establish a leadership position in the U.S. paper and packaging industry through its 1986 acquisition of 50 percent of Container Corporation of America (CCA) from Mobil Corporation.

Stone Container was founded in 1926 as J.H. Stone and Company, and it expanded outside of Chicago in the 1950s by buying and building corrugated container plants in several states. The company acquired facilities from Continental Group in 1983 and Champion International in 1986.

The merger of JSC and Stone brought together two leaders of the paper-based packaging industry, with JSG purchasing 20 million shares of JSC's stock from MSLEF II and certain other investors in conjunction with the merger closing.

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Entering manufacturing in the Great Depression was a daunting task, with many Americans struggling to make ends meet. The average monthly earnings for a worker in 1933 was just $22.65.

Factories were often forced to shut down due to lack of demand, but some entrepreneurs saw an opportunity to innovate and adapt. The Ford Motor Company, for example, began producing cars with a focus on affordability and durability.

The Great Depression was a time of great hardship, with many families relying on government assistance to get by. The Works Progress Administration (WPA) was established in 1935 to provide jobs for millions of Americans.

Henry Ford's innovative production methods allowed the Ford Motor Company to produce cars at a lower cost, making them more affordable for the average American. This helped to stimulate demand and get the economy moving again.

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Jefferson Smurfit Corporation was formed in 1974 when Ireland-based Jefferson Smurfit Group acquired a 40 percent interest in Time Industries Inc., a small Chicago-based maker of paperboard and packaging products.

Smurfit swiftly turned around the financially troubled paper companies it acquired, making its first move into the United States in 1974. By 1977, Smurfit had gained full ownership of Time Industries, which was renamed Smurfit Industries Inc.

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Smurfit spent $52 million to gradually take full control of Alton Box Board Co., a paperboard and packaging specialist based in Alton, Illinois, from 1979 to 1981. In September 1982, Smurfit formed a 50-50 joint venture to take over the packaging operations of Diamond International Group, then bought out the partner's shares to gain full control in 1983.

The total cost to Smurfit to acquire the $200-million-in-sales company was $86 million. In 1986, Smurfit made several more acquisitions which were added to JSC's holdings, including the purchase of an 80 percent interest in Publishers Paper Company for $132 million.

Smurfit's aggressive acquisition strategy led to a significant increase in JSC's revenues, from $630.4 million in 1985 to $1.1 billion in 1987. In 1989, JSC restructured as a privately held corporation, owned equally by Jefferson Smurfit Group and the Morgan Stanley Leveraged Equity Fund II L.P. (MSLEF).

In 1994, Smurfit needed funds to pay for its $1.04 billion acquisition of the paper and packaging unit—Cellulose du Pin—of France's Compagnie de Saint-Gobain. To do so, it took JSC public once again, after which Smurfit held a 47 percent interest in JSC, MSLEF held 36 percent, and the public 17 percent.

By 1997, Jefferson Smurfit Corporation had sales of more than $4 billion, with 43 percent of revenues coming from its containers/containerboard sector, 28 percent from folding carton and boxboard, 11 percent from reclamation and wood, nine percent from newsprint, and another nine percent from industrial and consumer packaging.

Smurfit-Stone Container Corporation was created in 1998 through the merger of Jefferson Smurfit Corporation and Stone Container Corporation. Following the stock transaction, Jefferson Smurfit Group owned about 33 percent of Smurfit-Stone, MSLEF owned nine percent, with the remaining ownership interest in the hands of the public.

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Smurfit-Stone Container Corporation is the industry's leading integrated manufacturer of paperboard and paper-based packaging. The company is the largest North American producer of containerboard and corrugated containers.

Smurfit-Stone is a leading producer of kraft paper packaging, bleached paperboard, and point-of-purchase displays. This wide range of products showcases the company's innovative approach to packaging.

As one of the world's largest paper recyclers, Smurfit-Stone plays a crucial role in the paper industry. This commitment to sustainability helps the company meet the growing demand for value-added packaging.

Smurfit-Stone's ability to meet customer needs is due in part to its broad product range, which is made possible by its combination of production capabilities and innovation. This allows the company to create innovative packaging concepts and speed them to market.

Smurfit-Stone is changing customer perceptions of what packaging can do and what the company can deliver. The company's focus on innovation and customer needs is a key factor in its success.

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Smurfit-Stone Container had a relatively simple business structure, with one reportable business segment in 2006. This segment accounted for 95 percent of net sales.

The company's containerboard and corrugated containers segment included containerboard mills and corrugated container operations. It's worth noting that the company had a significant presence in the corrugated container market.

Smurfit-Stone Container had a number of subsidiaries, including Cameo Container Corporation and Packaging Unlimited, Inc. The company also had operations in Mexico, Canada, and Hong Kong, among other locations.

In 2006, Smurfit-Stone had a relatively simple business structure with one reportable business segment.

The company's containerboard and corrugated containers segment accounted for 95 percent of net sales, making it the primary source of revenue.

This segment included the company's containerboard mills and corrugated container operations, which were the backbone of Smurfit-Stone's business.

The reclamation operations, on the other hand, accounted for only 5 percent of net sales and consisted of recycling operations, including collection centers and brokerage sales offices.

Smurfit-Stone's revenue for 2006 was $7.2 billion, a significant amount that was largely driven by the containerboard and corrugated containers segment.

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The company has a diverse range of subsidiaries, with 17 listed in the principal subsidiaries section.

One of the subsidiaries is Cameo Container Corporation.

The company also has a significant presence in Mexico, with CCA de Baja California S.A. de C.V. being one of its subsidiaries.

Francobec Company in Canada is another subsidiary, as is MBI Limited.

ORPACK-Stone Corporation is also a subsidiary, as are Packaging Unlimited, Inc. and SMBI Inc.

Smurfit Newsprint Corporation is another notable subsidiary, along with Smurfit-MBI (Canada).

Smurfit-Stone Container Canada Inc. and Smurfit-Stone Container Enterprises, Inc. are also subsidiaries.

Smurfit-Stone PSC (Asia) Limited in Hong Kong rounds out the list of subsidiaries.

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Smurfit-Stone Container Corporation (SSCC) was a significant player in the packaging industry, with a business structure that was divided into several key divisions.

The Corrugated Container Division was a major part of the company's operations, accounting for a significant portion of its revenue.

In 2006, the Containerboard and Corrugated Containers segment, which included the Corrugated Container Division, accounted for 95 percent of net sales.

The Containerboard Mill Division was another crucial part of SSCC's operations, responsible for producing the raw materials needed for the company's corrugated containers.

The Recycling Division played a vital role in the company's sustainability efforts, with reclamation operations accounting for 5 percent of net sales in 2006.

SSCC had a global presence, with subsidiaries and operations in North America, Canada, Mexico, and Asia.

RockTenn to Acquire Smurfit-Stone Container in a $3.5 billion deal, creating one of the largest paper and packaging companies in North America.

Smurfit-Stone Container is a leading manufacturer of paperboard packaging in the United States and Canada.

The acquisition will add 123 paper mills and packaging plants to RockTenn's operations.

Smurfit-Stone Container has a strong presence in the packaging industry, with a diverse range of products and services.

RockTenn's acquisition of Smurfit-Stone Container will create a company with a combined revenue of $10.8 billion.

The deal is expected to close in the fourth quarter of 2006.

Smurfit-Stone's bankruptcy filing was announced in early January 2009, causing an 83% collapse of the company's stock price.

The company's CEO cited higher operations costs, burdensome debt levels from prior corporate mergers, and weakened demand for packaging due to a global economic recession as reasons for the bankruptcy.

Smurfit-Stone filed petitions for reorganization under Chapter 11 in the U.S. Bankruptcy Court in Wilmington, Delaware on January 27, 2009.

The company hoped to obtain debtor-in-possession (DIP) financing to continue ongoing business operations, pay employee wages and benefits, and fulfill existing vendor obligations.

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Smurfit-Stone Container was a leading manufacturer of containerboard and corrugated containers.

The company was formed in 2001 through the merger of Smurfit Group and Stone Container Corporation.

It had operations in the United States, Canada, and Mexico.

Smurfit-Stone Container employed over 9,000 people worldwide.

The company's products included containerboard, corrugated containers, and specialty packaging solutions.

Smurfit-Stone Container was a major player in the corrugated packaging industry.

Stone Container expanded aggressively in the 1950s by locating plants near its customers, as it was not economical to transport corrugated boxes more than about 125 miles. This strategic move allowed the company to serve its customers more efficiently.

The company acquired several box companies during this period, including W.C. Ritchie & Company of Chicago in 1955 and Western Paper Box Company of Detroit in 1956. Stone Container also acquired three companies in 1959: Campbell Box & Tag Company of South Bend, Indiana; Acme Carton Company of Chicago; and Delmar Paper Box Company.

By 1960, Stone Container had diversified its operations to include the sale of folding cartons, fiber cans and tubes, tags, and special paper packages. This diversification was largely due to the acquisition of W.C. Ritchie & Company, a manufacturer of high-grade paperboard-product packages.

Stone Container built a new kraft liner-board mill at Florence, South Carolina, through its subsidiary South Carolina Industries (SCI). The mill, which cost $24 million to build, was completed in 1964 and had the capacity to produce 400 tons of board a day.

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