Sealright Co. Inc. shareholders approved a cash merger with Finnish confectionery and packaging company Huhtamaki Oy.
The DeSoto-based company said shareholders at a special meeting also approved the distribution of Sealright's flexible-packaging business to stockholders, forming a new public company to be known as JPS Packaging Co.
Huhtamaki said in March it would pay $122 million and assume $80 million of debt to acquire Sealright's rigid packaging business.
Sealright said Monday that under the distribution plan, shareholders would receive $11 in cash and one-half share of stock in JPS Packaging for each Sealright share.
JPS is the portion of Sealright that Huhtamaki is not acquiring, which includes the flexible packaging operations. Huhtamaki bought the bigger portion of Sealright's operations, which consist of manufacturing paperboard packaging for food. The deal was effective at midnight.
Huhtamaki, a $1.2 billion maker of paperboard and plastic packaging, acquired Sealright's DeSoto facility.