Packaging Corporation of America (PCA) has agreed to acquire all of the assets of independent corrugated products provider TimBar for $386m.

As part of a definitive agreement, PCA will acquire TimBar’s five corrugated products plants, two fulfilment centres and four design centres in the US.

With the transaction, PCA’s containerboard integration level is expected to increase by more than 200,000t.

"This acquisition is an excellent fit, both geographically and strategically, with substantial benefits and synergies."

PCA chairman and CEO Mark Kowlzan said: "Following our successful integration of Boise, including the capacity we now have at the DeRidder, LA mill, this acquisition is an excellent fit, both geographically and strategically, with substantial benefits and synergies."

PCA Corrugated Products executive vice-president Tom Hassfurther added: "The highly-skilled employees, culture and customer base of TimBar complements PCA extremely well and allows us to apply our operating and sales expertise across a larger system providing significant growth potential.

"This enables us to optimise our focus on customised solutions for our customers and makes us less reliant on the export market while maintaining strategic relationships with our key export customers."

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The cash-free, debt-free transaction is expected to close in the third quarter of 2016, following the satisfaction of customary conditions and receipt of regulatory approval.

TimBar provides solutions to customers in the higher margin retail, industrial packaging, and display and fulfilment markets, with a focus on multi-colour graphics and technical innovation.

PCA operates eight mills, as well as 90 corrugated products plants and related facilities.

The company is the fourth largest producer of containerboard and corrugated packaging products in the US, and the third largest producer of uncoated freesheet paper in North America.