Packaging Corporation Of America To Acquire TimBar Corp. - Quick Facts

(RTTNews) - Packaging Corporation of America (PKG) announced a definitive agreement to acquire substantially all of the assets of TimBar Corp., an independent corrugated products producer, in a cash-free, debt-free transaction for a cash purchase price of $386 million. The acquisition will be accretive to earnings immediately.

PCA will acquire five corrugated products plants, two fulfillment centers and four design centers located primarily in the eastern and southeastern U.S. The company said, as a result of the acquisition, its containerboard integration level is expected to increase by over 200,000 tons or 6% from its current level of 87% and will allow for further optimization and enhancement of mill capacity.