KapStone Paper and Packaging has completed the previously announced stock purchase of US containerboard manufacturer Longview Fibre Paper and Packaging for $1.03bn.
KapStone chairman and chief executive officer Roger Stone said the acquisition will increase the company’s exposure to the containerboard segment.
"It also broadens our Kraft paper line and makes KapStone a global producer of high performance extensible multiwall paper, a grade which is growing at about 4% per year," Stone added.
In the second quarter, Longview’s revenues and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $228m and $49m, respectively, and yielded an adjusted EBITDA margin of 20.7%.
Adjusted EBITDA in June exceeded $19m benefitting from the partial implementation in the quarter of the $50 per ton containerboard and associated box price increases.
According to KapStone, funding for the acquisition came from borrowings under the $1.675bn amended and restated senior secured credit facility led by Bank of America, Barclays Bank, and Well Fargo Bank.
Longview manufactures containerboard, lightweight high performance multiwall paper, specialty kraft papers, and corrugated products.