RockTenn has entered into an agreement with Simpson Lumber to acquire the latter's Tacoma Kraft paper mill in Tacoma, Washington, for around $343m.
The transaction, which is subject to customary closing conditions and regulatory approvals, is structured as an asset purchase.
The mill has two paper machines and two pulp dryers, which manufacture different paper grades such as containerboard, specialty kraft paper and pulp. It produced 465,000 tons of paper in 2013.
Tacoma Kraft paper mill operates a 55MW green biomass fuel cogeneration facility that sells electricity under a long-term contract.
RockTenn, which also secured a contract with Simpson Lumber to supply wood chip for seven years, has committed to invest $60m in the mill during the next three years.
RockTenn chief executive officer Steve Voorhees said the Tacoma Kraft Mill is a great strategic fit for RockTenn.
"Adding a West Coast mill will improve our ability to satisfy West Coast customers and generate significant operating efficiencies across our system," Voorhees added.
