Packaging Corporation of America (PCA) has entered into a definitive agreement to acquire substantially all of the assets of Columbus Container, Inc., an independent corrugated products producer, in a cash-free, debt-free transaction for a cash purchase price of $100 million. Under the terms of the agreement, PCA will acquire a full-line corrugated products facility located in Columbus, Indiana, five warehousing facilities and other related operations located in Indiana and Illinois.
As a result of the acquisition, PCA’s containerboard integration level is expected to increase by over 30,000 tons and will allow for further optimization and enhancement of mill capacity, the company reported.
PCA Chairman and CEO Mark Kowlzan said, “Following our acquisition of Timbar, this acquisition will further enhance our operations both geographically and strategically through additional integration and optimization of our warehousing and logistics capabilities.” PCA Executive Vice President, Tom Hassfurther, added “Like previous acquisitions, the addition of Columbus Container is a great strategic fit for PCA. They have in place an excellent management team that leads a highly skilled and dedicated group of employees and have earned an outstanding reputation in the marketplace.”
Closing is subject to certain customary conditions and regulatory approval and is expected in the fourth quarter of 2016. The company expects to finance the transaction with available cash on hand. PCA is the fourth largest producer of containerboard and corrugated packaging products in the United States and the third largest producer of uncoated freesheet paper in North America. PCA operates eight mills and 95 corrugated products plants and related facilities.
