Philip Saglimbeni • 11 Comments
Wed, Jul. 6, 10:56 AM
- Packaging Corporation of America (PKG) entered into a definitive agreement to acquire substantially all the assets of TimBar Corporatio for $386M in cash. As per the agreement, the company will take over five corrugated products plants, two fulfillment centers and four design centers located primarily in the eastern and southeastern U.S.
- The acquisition will lead to growth of 2 lacs tons or 6% from its current level of 87% in container board integration level and will allow for further optimization and enhancement of mill capacity. The acquisition will be accretive to earnings immediately.
- PCA Chairman and CEO Mark Kowlzan said, “Following our successful integration of Boise, including the capacity we now have at the DeRidder, LA mill, this acquisition is an excellent fit, both geographically and strategically, with substantial benefits and synergies. TimBar is a well-capitalized company with a commitment to continuous improvement, innovation and safety in their operations. This, along with their customer focus, has allowed them to achieve excellent operating margins and consistent results. We look forward to working together to further enhance our strong balance sheet, financial results and cash flow consistent with our strategy to return significant value to our shareholders.”
- The company expects to complete the acquisition in the Q3 and expects to finance the transaction with a new term loan.
- Press Release
Oct. 25, 2013, 12:43 PM
- Packaging Corporation of America (PKG +0.7%) completes the acquisition of Boise (BZ +0.2%). All BZ shares not purchased in the tender offer have been converted into the right to receive $12.55/share in cash.
- 6.6% Boise shareholder Carlson Capital had agitated for a divestment of the paper ops and believed shares could be worth as much as $17/share.
Sep. 16, 2013, 7:31 AM
- Packaging Corporation of America (PKG) agrees to acquire Boise (BZ) for $12.55 per share in cash, or nearly $2B. The sale is expected to close in Q4, subject to certain customary conditions and regulatory approval.
- PCA's containerboard capacity will increase to 3.7M tons from the current 2.6M and PCA will now have a market presence in the Pacific Northwest.
- Synergies are expected to generate pre-tax benefits of $105M, to be fully realized within 3 years of the closing, according to PCA management.
- Boise shareholders are getting 5x LTM EBITDA for their stock.
- BZ closed at $9.96 Friday evening, making the purchase price a 26% premium.
Jun. 7, 2011, 2:52 PM
International Paper (IP +1.1%) and Temple-Inland (TIN +42.3%) are in focus after IP's $30.60/share bid was rejected despite being a 46% premium to Monday's closing price. Other packaging and paper stocks rally on calls from bullish analysts that the industry is heading for consolidation: PKG +6.9%, WY +6.2%, BZ +5.6%, KS +4.3%, RKT +3.1%.| Jun. 7, 2011, 2:52 PM