OfficeMax Incorporated (NYSE: OMX) has figured out a way to unlock serious value of sorts. Boise Cascade has filed for an initial public offering. The IPO is said to be for up to $200 million but no terms have been set. Boise Cascade is a large vertically-integrated wood products manufacturer and building materials distributor, and OfficeMax made a $175 million investment in this company back in a 2004 deal and Madison Dearborn is the controlling party here now.

The underwriters selected were BofA Merrill Lynch, Goldman Sachs, Deutsche Bank Securities, J.P.  Morgan, and Wells Fargo. Even with the 22% jump in OfficeMax shares to $10.10, the market value here is only $875 million. If this can really add some $300 million in total value then this may have truly unlocked value.

Just keep in mind that this office supplies and office products sector has been very painful. It has turned large fortunes into small fortunes. Staples Inc. (NASDAQ: SPLS) is a no-growth value story now and its shares are incredibly low based on history. Now we have word that Office Depot, Inc. (NYSE: ODP) invoked a Poison Pill to block efforts from Starboard as it now holds more than 13% of this stock.

This marks a 52-week high for OfficeMax shares as the prior 52-week range was $4.09 to $8.77. This was an $18 stock just two years ago.

JON C. OGG

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