Illinois-based PCA plans to buy Boise, owner of DeRidder mill

(Source: Boise)
(Source: Boise)

DERIDDER, LA (KPLC) - Packaging Corporation of America plans to buy Boise, which owns and operates a DeRidder mill, according to a news release from Packaging Corporation of America (PCA).

PCA, based in Illinois, and Boise entered into an agreement last month.

The sale price is around $1.9 billion.

"PCA will acquire all of the outstanding common shares of Boise for $12.55 per share in cash, for an aggregate transaction value of $1.995 billion, inclusive of $714 million of outstanding indebtedness of Boise," the release states.

Officials say the transaction is expected to close in the fourth quarter of 2013, "with committed debt financing, but is subject to certain customary conditions and regulatory approvals."

"PCA's containerboard capacity will increase to 3.7 million tons from its current level of 2.6 million tons (a 42% increase) including the announced expansion of paper machine number 2 (D2) at Boise's DeRidder mill. PCA's corrugated products volume will increase by about 30% as a result of the acquisition, and PCA's market presence will expand into the Pacific Northwest," the release continues.

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