Bloomberg "Anywhere" Remote Login Bloomberg "Terminal" Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

KapStone Agrees to Buy Longview Fibre for $1.03 Billion

June 10 (Bloomberg) -- KapStone Paper and Packaging Corp. agreed to buy Longview Fibre Paper and Packaging Inc., a maker of paper used for shipping containers, from a fund managed by Brookfield Asset Management Inc. for $1.03 billion in cash.

The transaction will add to KapStone’s profitability immediately, the Northbrook, Illinois-based company said in a statement today. KapStone has committed financing from Bank of America Corp., Barclays Plc and Wells Fargo & Co. for the deal, which is expected to close this summer.

“This acquisition will increase our exposure to the highly desirable containerboard segment,” KapStone Chief Executive Officer Roger Stone said in the statement. “It also broadens our Kraft paper line and makes KapStone a global producer of high performance extensible multiwall paper, a grade which is growing at about 4 percent per year.”

Longview, which operates a mill in Longview, Washington, generated $831 million in net sales and $118 million of earnings before interest, taxes, depreciation and amortization last year, according to the statement. In the first quarter of this year, Longview’s net sales were $217 million, generating $42 million of Ebitda, KapStone said in the statement.

KapStone rose 18 percent to $35.04 at the close in New York, the biggest gain since March 2009.

(KapStone has scheduled a conference call for 4:15 p.m. New York time tomorrow, accessible at EVTS <GO>.)

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.