International Paper has agreed to acquire North Pacific Paper Company (NORPAC) from One Rock Capital Partners in a $360m deal.
NORPAC runs a paper mill in Longview, Washington, US.
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The site has 500 employees and three paper machines, with an annual output of around one million tonnes of containerboard and other paper grades.
One Rock Capital Partners co-founder and managing partner Tony Lee said: “NORPAC is a high-quality business built on the strength of its first-rate management team and employees.
“We are proud to have achieved together a years-long transformation of NORPAC during our ownership. We believe this transaction with International Paper underscores the value created at NORPAC and positions the company for continued success as part of a larger platform.”
International Paper said the mill would add to its existing network, with the deal expected to improve operational flexibility, reduce costs and widen its ability to meet demand for lightweight recycled containerboard.
The transaction remains subject to regulatory clearance.
International Paper Packaging Solutions North America executive vice-president and president Tom Hamic said: “This acquisition is a strong strategic fit for our business and supports our long‑term value creation priorities.
“NORPAC’s attractive customer base, location and operational capabilities strengthen our ability to serve customers in the growing West Coast region. We look forward to partnering with the mill team and its customers to deliver a safe, seamless integration.”
Earlier this year, International Paper set out plans to separate its operations into two independently listed companies.
Under the plan, the company’s North American business will continue under the International Paper name while its packaging operations across Europe, the Middle East and Africa will be spun off into a separate entity.
The North American business will include assets from International Paper and DS Smith, which the company bought last year.
