Packaging Corp. of America (PCA) has entered into an agreement to acquire the assets of TimBar Corp., a large independent corrugated products producer, for $386 million.
PCA will acquire five corrugated products plants, two fulfillment centers and four design centers all primarily in the eastern and southeastern U.S.
“Following our successful integration of Boise, including the capacity we now have at the DeRidder, Louisiana mill, this acquisition is an excellent fit, both geographically and strategically, with substantial benefits and synergies," PCA Chairman Mark Kowlzan said. "TimBar is a well-capitalized company with a commitment to continuous improvement, innovation and safety in their operations. This, along with their customer focus, has allowed them to achieve excellent operating margins and consistent results."
Kowlzan anticipates working together to further enhance PCA's balance sheet, financial results and cash flow.
“The highly skilled employees, culture and customer base of TimBar complements PCA extremely well and allows us to apply our operating and sales expertise across a larger system providing significant growth potential," TimBar Executive Vice President Tom Hassfurther said. "This enables us to optimize our focus on customized solutions for our customers and makes us less reliant on the export market while maintaining strategic relationships with our key export customers
Closing, which is subject to regulatory approval, is expected in the third quarter of this year.