PCA announces acquisition of Columbus Containerboard

Lake Forest, Illinois-based Packaging Corp. of America (PCA) says it has entered into a definitive agreement to acquire “substantially all of the assets” of Columbus, Indiana-based Columbus Container Inc. The acquired company describes itself as a “full-service corrugated supplier” with five production or warehouse facilities in Indiana and one in Illinois.

PCA says the acquisition is a cash-free, debt-free transaction for a purchase price of $100 million. Closing is subject to regulatory approval and is expected to occur later in the fourth quarter of 2016.

Under the terms of the agreement, PCA will acquire the full-line corrugated products facility in Columbus, Indiana, and the five other facilities in Indiana and Illinois.

As a result of the acquisition, PCA’s integrated, downstream containerboard capacity is expected to increase by more than 30,000 tons. PCA says the acquisition also “will allow for further optimization and enhancement of mill capacity.”

“Like previous acquisitions, the addition of Columbus Container is a great strategic fit for PCA,” says Tom Hassfurther, PCA executive vice president. “They have in place an excellent management team that leads a highly skilled and dedicated group of employees and have earned an outstanding reputation in the marketplace.”

PCA describes itself as the fourth largest producer of containerboard and corrugated packaging products in the United States and the third largest producer of uncoated freesheet paper in North America. The company operates eight mills and 95 corrugated products plants and related facilities.