RockTenn to acquire Simpson Tacoma paper mill

RockTenn, based in Norcross, Ga., has signed an agreement to acquire the Simpson Tacoma Kraft paper mill in Tacoma, Wash., from Simpson Lumber Co. LLC, Tacoma, for about $343 million. RockTenn says it structured the transaction as an asset purchase.

In 2013, the mill produced 465,000 tons using two paper machines and two pulp dryers. The various paper grades produced included containerboard, specialty kraft paper and pulp. Additionally, the Tacoma Kraft Mill operates a 55-megawatt green biomass fuel cogeneration facility that was completed in 2009 and sells electricity under a long-term contract.

In making the acquisition, RockTenn also has committed to invest $60 million in the mill during the next three years and has entered into a seven-year wood chip supply contract with Simpson Lumber.

Steve Voorhees, RockTenn CEO says, "The Tacoma Kraft Mill is a great strategic fit for RockTenn. Adding a West Coast mill will improve our ability to satisfy West Coast customers and generate significant operating efficiencies across our system."

"We look forward to working with the entire Simpson team to build on the fine relationships they have developed over the years with the Tacoma Kraft Mill's customers as well as enhancing the satisfaction of RockTenn's customers in the western United States," says Jim Porter, president of RockTenn's Corrugated Packaging segment.

"This is exciting news for Tacoma Kraft employees and the community. The Tacoma Kraft Mill will be better positioned as part of RockTenn—a successful fiber-based company that is committed to the long-term success of the mill," says Allan Trinkwald, president of Simpson Lumber Co. LLC.