Packaging Corporation Acquires Columbus To Boost Earnings
Zacks Investment Research | Oct 11, 2016 09:31PM ET
Packaging Corporation of America (NYSE:PKG) recently entered into a definitive agreement to acquire Columbus Container, Inc., an independent corrugated products producer, for $100 million. The deal is likely to be closed by fourth quarter of 2016.
Per the deal, Packaging Corporation will acquire a full-line corrugated products business located in Columbus, IN along with five warehousing facilities and other connected units located in Indiana and Illinois. The acquisition is expected to increase containerboard production by over 30,000 tons. The transaction is expected to be immediately accretive to earnings.
On Aug 29, Packaging Corporation completed the acquisition of TimBar Corporation for $386 million, in cash. The transaction was funded through a five-year term loan facility. This acquisition is expected to increase containerboard integration by over 200,000 tons or 6% from its then current level of 87%. The transaction also allowed further optimization and enhancement of its mill capacity and was likely to be accretive with immediate effect.
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