Packaging Corp. of America to buy Boise for $1.27 billion to add mills
Packaging Corp. of America, Lake Forest, Ill., the fourth-largest U.S. producer of corrugated shipping boxes, agrees to buy Boise Inc. for about $1.27 billion, to boost capacity. The deal includes $714 million of Boise’s debt and will close in the fourth quarter, they say. The takeover will increase Packaging Corp.’s containerboard production capacity by 42% to 3.7 million tons a year and boost the company’s presence in the Pacific Northwest, the companies say.
“This acquisition allows us to apply our operating and sales expertise across a much larger system and provides significant growth potential,” says Packaging Corp. CEO Mark Kowlzan in a statement. The combined companies generated $5.5 billion in sales and $879 million in earnings before interest, taxes, depreciation and amortization last year, according to the statement.