Packaging Corporation of America Announces Agreement to Acquire Columbus Container, Inc.
As a result of the acquisition, PCA's containerboard integration level is expected to increase by over 30,000 tons and will allow for further optimization and enhancement of mill capacity. The value of the increased containerboard integration, the expected synergies and the tax benefit of the step-up of assets, plus Columbus Container’s LTM EBITDA, results in a purchase price multiple of approximately 3.3 times EBITDA. The acquisition will be accretive to earnings immediately.
PCA Chairman and CEO
Closing is subject to certain customary conditions and regulatory approval and is expected in the fourth quarter of 2016. The company expects to finance the transaction with available cash on hand.
PCA is the fourth largest producer of containerboard and corrugated
packaging products in
Some of the statements in this press release are forward-looking
statements. Forward-looking statements include statements about expected
synergies or other benefits from the acquisition, the timing of
completion of the acquisition, our future earnings and financial
condition, our industry and our business strategy. Statements that
contain words such as “ will”, “should”, “anticipate”, “believe”,
“expect”, “intend”, “estimate”, “hope” or similar expressions, are
forward-looking statements. These forward-looking statements are based
on the current expectations of PCA. Because forward-looking statements
involve inherent risks and uncertainties, the plans, actions and actual
results of PCA could differ materially. Among the factors that could
cause plans, actions and results to differ materially from PCA’s current
expectations include the following: the impact of general economic
conditions; conditions in the paper and packaging industries, including
competition, product demand and product pricing; fluctuations in costs;
the possibility of unplanned outages or interruptions at our principal
facilities; and legislative or regulatory requirements, particularly
concerning environmental and tax matters, as well as those identified
under Item 1A. Risk Factors in PCA’s Annual Report on Form 10-K for the
year ended
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Source:
Packaging Corporation of America
Barbara Sessions
INVESTOR
RELATIONS: (877) 454-2509
PCA’s Website: www.packagingcorp.com