Packaging Corporation of America (PCA) has acquired all the assets of independent corrugated products provider TimBar for $386m.
TimBar provides solutions to customers in the higher margin retail, industrial packaging, and display and fulfilment markets. It focuses on multi-color graphics and technical innovation.
PCA chairman and CEO Mark Kowlzan said: “We are very pleased to complete this transaction and welcome our new employees to PCA. Integrating these new operations into PCA will quickly enhance our financial results while maintaining a strong balance sheet.”
As part of a definitive agreement signed earlier, PCA has purchased TimBar's five corrugated products plants, two fulfilment centers and four design centers in the US.
Kowlzan earlier 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."
With the cash-free, debt-free transaction, PCA's container board integration level is expected to increase by more than 200,000t.
Earlier PCA said that the TimBar allows the company to apply operating and sales expertise across a larger system while optimizing focus on customized solutions.
The acquisition also allows PCA to reduce reliance on the export market while maintaining strategic relationships with customers.
PCA operates eight mills, as well as 90 corrugated products plants and related facilities.
The company is claimed to be 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.
