Packaging products manufacturer Packaging Corporation of America (PKG - Free Report) has completed the acquisition of corrugated products producer, Columbus Container, Inc. for $100 million. The buyout is a strategic fit for Packaging Corporation and is expected to be immediately accretive to earnings.
Packaging Corporation has acquired 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 anticipated to increase containerboard production by over 30,000 tons.
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 estimated to increase containerboard integration by over 200,000 tons or 6% from its previous level of 87%. Further, the transaction allowed further optimization and enhancement of its mill capacity and was accretive with immediate effect.
PACKAGING CORP Price