Packaging Corporation of America (PCA) has signed a definitive agreement to purchase US-based corrugated products manufacturer Columbus Container for $100m.
As part of the cash-free, debt-free deal, PCA will buy Columbus Container’s full-line corrugated products facility located in Indiana, US.
The deal also includes Columbus Container’s five warehousing facilities and other related operations situated in Indiana and Illinois.
Subject to customary conditions and regulatory approval, the deal is scheduled to be completed in the last quarter of 2016.
PCA chairman and CEO Mark Kowlzan said: “Following our acquisition of TimBar, this acquisition will further enhance our operations both geographically and strategically through additional integration and optimisation of our warehousing and logistics capabilities.”
In August, the company completed the acquisition of TimBar, which produces corrugated products.
Once completed, the latest deal is expected to increase PCA's containerboard integration level by more than 30,000t and enhance its mill capacity.
PCA executive vice-president Tom Hassfurther said: “Like previous acquisitions, the addition of Columbus Container is a great strategic fit for PCA.
“They have in place an excellent management team that leads a highly skilled and dedicated group of employees and have earned an outstanding reputation in the marketplace.”
PCA operates eight mills, as well as 95 corrugated product plants and related facilities.
The company currently produces containerboard, corrugated packaging and uncoated freesheet paper.