Packaging Corporation of America (PCA), a manufacturer of containerboard and corrugated packaging, has completed its previously announced acquisition of the US-based Boise for $1.9bn.
The transaction includes $714m of outstanding indebtedness of Boise, which will become a wholly-owned subsidiary of PCA.
Following the acquisition, PCA’s containerboard capacity is expected to increase by 42% to 3.7mt from its existing 2.6mt that includes expansion of paper machine at Boise’s DeRidder mill.
PCA’s corrugated products production capacity will increase by about 30% due to the move, while its market presence is expected to expand into the Pacific Northwest.
PCA chief executive officer Mark Kowlzan said, "This acquisition allows us to apply our operating and sales expertise across a much larger system and provides significant growth potential."
The acquisition, which is said to be a better fit, both geographically and strategically with substantial synergies, will provide the containerboard that PCA needs to support its corrugated products growth.