KapStone Paper and Packaging has signed an agreement to acquire the stock of Longview Fibre Paper and Packaging from Brookfield Asset Management for $1.02 billion in cash.
Longview is a manufacturer of containerboard, lightweight high performance multiwall paper, specialty Kraft papers, and corrugated containers. Longview’s operations include a mill located in Longview, WA equipped with five paper machines which produce 1.15 million tons of containerboard and Kraft paper annually. In 2012, Longview generated $831 million in net sales and $118 million of EBITDA. In the first quarter of 2013, Longview’s net sales were $217 million generating $42 million of EBITDA. The company is based in Longview, WA (www.longviewfibre.com).
“We are excited to be part of the KapStone family. It’s a great opportunity for our customers and employees. Our product lines complement each other and provide us with a national presence in corrugated containers. We thank Brookfield for the support they have given us,” said Randy Nebel, President of Longview.
Brookfield Asset Management is a global alternative asset manager with over $175 billion in assets under management. The firm has headquarters in Toronto and New York (www.brookfield.com).
“I would like to thank all of the people at Longview who have contributed toward building a safe and successful business and I am confident that this success will continue with KapStone,” said Hugh Sutcliffe, Managing Partner of Brookfield.
KapStone Paper and Packaging (NYSE: KS) is a pulp and paper company with Kraft paper manufacturing facilities in Roanoke Rapids, NC; Cowpens, SC; and North Charleston, SC; a lumber mill in Summerville, SC; and 15 corrugated box and corrugated fiberboard plants. The company was originally started as a special-purpose acquisition company in 2005. It became an ongoing business concern when it acquired the Roanoke Rapids Kraft paper mill from International Paper in January 2007. In July 2008 it acquired the Charleston Kraft paper mill from MeadWestvaco. In October 2011 KapStone acquired U.S. Corrugated for $330 million. Today, KapStone has approximately 2,700 employees and is based in Northbrook, IL (www.kapstonepaper.com).
Bank of America, Barclays Bank, and Wells Fargo Bank have provided committed financing to KapStone for this transaction.
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-12-13
