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Aaron Spatz is the writer of SEC Live Filings Digest, detailing the news of companies trading on U.S. stock exchanges. The Filings Digest is but one component of the greater website SEC Live, which specializes in making SEC filings easy to read, research, navigate, and much more.
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  • Packaging Corp. To Purchase Boise 0 comments
    Sep 16, 2013 10:41 AM | about stocks: PKG, BZ

    Originally published at www.seclive.com

    Packaging Corp. of America (NYSE:PKG) has announced it will purchase Boise Inc. (NYSE:BZ) in a deal valued at $2.0B. The paper and packaging companies, once combined, will vastly improve and expand Packaging Corp.'s containerboard business. The deal involves Boise shareholders receiving $12.55 cash per share, 26% above the closing price Friday, and the assumption of $714M in debt. Both company's boards approved the acquisition, which is set to close in fourth quarter. Packaging Corp. expects its containerboard capability will improve by 42% to 3.7 million tons. For the 12 months ending June 30, the combined companies generated $5.5B in sales with earnings of $879M. Boise has not performed very well in recent months because of decreased paper sales, and believes that this acquisition is the best move to maximize shareholder value.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: acquisition Stocks: PKG, BZ
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