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Reader thinks Roger Stone got a bargain, we differ.



Dear PM:

Looks like Roger Stone got a bargain when he picked up IP's Roanoke Rapids, North Carolina mill for less than USD 100,000 per daily ton. What do you think?

With best regards,

Reader in Louisiana


Dear RIL:

We beg to differ. The multiplier on EBITDA (earnings before interest, taxes, depreciation, and amortization) was an extremely rich 12.9. Stone Arcade Acquisition Corp must know something we don't.

The machines are fast at Roanoke Rapids, but the published trim widths makes fitting modern corrugators problematic, unless Stone Arcade Acquisition Corp. (SAAC) plans on installing a web welder (a proven, but not widespread technology).

The other elements of this acquisition were converting. Perhaps this is where the value resides.

PM will be watching this acquisition with much interest. Right now, it looks like IP was the winner.

Regards,

PM

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