Packaging Corporation announces $100 million acquisition of Columbus Container Inc.

CHICAGO (Scrap Monster): Packaging products manufacturer Packaging Corporation of America (PCA) has announced that it has entered into a definitive agreement with Columbus, Indiana-based Columbus Container Inc. to acquire substantially all of its assets. The purchase deal is worth $100 million. The closing of the deal is subject to customary conditions and regulatory approvals and is expected to happen during the fourth quarter of this year.

The purchase deal covers Columbus Container’s full-line corrugated products facility located in Columbus, Indiana. In addition, PCA will also acquire five warehousing facilities and other related operations located in Indiana and Illinois, including Seymour Division, Jasper Division, Flora Division, Edinburgh Warehouse and Indianapolis Warehouse, as part of the deal. The acquisition of the assets will help PCA to further optimize and enhance the mill capacity in the region. It will boost PCA’s downstream containerboard capacity by additional 30,000 tons.

Meantime, Tom Hassfurther, PCA’s executive vice president noted that the acquisition of Columbus Container is a great strategic fit for the company. He welcomed the highly skilled and dedicated employees of Columbus and its management team into the company. Columbus’ outstanding marketplace reputation will contribute substantially to PCA’s efforts in expanding its Indiana footprints.

As per the purchase agreement, the name of the acquired company will stay the same. All employee jobs will be secured. No management change will be made for the time being. In addition, if the new company decides to expand the Columbus Container business, it may add new jobs as well. PCA has also promised that all small and large customers will be served equally as is done currently.

Columbus Container is the second corrugated products company to be acquired by PCA during the past few months. During late-August this year, PCA had announced completion of acquisition of assets of Timbar Corporation in an all-cash deal of $386 million, in accordance with the definitive agreement entered in July. The acquisition was termed a geographic and strategic fit for the company as it would bring in substantial benefits and synergies to PCA. The transaction was funded through a five-year term loan facility and was expected to increase PAC’s containerboard integration by over 200,000 tons.

About Packaging Corporation of America

Packaging Corporation of America is 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. PCA operates eight mills and 95 corrugated products plants and related facilities.

About Columbus Container Inc.

Found in 1975, Columbus Container has grown to become the 10th largest manufacturer in Bartholomew County, and 21st largest business in all based on total employment. Headquartered at 3460 Commerce Drive, between North National Road and Indianapolis Road on the northwest side of Columbus, the company currently employs nearly 260 people.