
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, October 27, 1995                   TAG: 9510270132
SECTION: BUSINESS                    PAGE: B7   EDITION: METRO 
SOURCE: 
DATELINE: NEW YORK                                 LENGTH: Short

RIVERWOOD SALE SET

Manville Corp. agreed Thursday to sell its Riverwood International Co. unit to a group led by New York investment firm Clayton, Dubilier & Rice Inc. for $2.7 billion, including $1.2 billion in debt.

The proposed leveraged buyout caps a six-month search by Manville, which owns 81.3 percent of the Atlanta-based packaging company. Manville said in April that it wanted to get rid of Riverwood, which sells paper and machinery used to make cartons and boxes.

The investor group, which includes Riverwood managers and Brown Brothers Harriman & Co., is paying $20.25 a share, less than investors had been expecting when the company was put up for auction.

Riverwood is tied with Mead Corp. as the largest paperboard makers for the U.S. beverage packaging industry. Its customers include Coca-Cola Co., Sara Lee Corp. and Miller Brewing Co.

- Bloomberg Business News

by CNB