IP Plans to Acquire Norpac to Strengthen Its North American Business
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International Paper plans to acquire North Pacific Paper Company (Norpac), a U.S.-based manufacturer of corrugated base paper, from One Rock Capital Partners for $360 million. The two companies have already signed an agreement to that effect.
The transaction is still subject to regulatory approvals.
Norpac operates a paper mill in Longview, Washington, and employs approximately 500 people. The facility operates three paper machines and produces approximately 900,000 metric tons of corrugated base paper and other paper grades annually.
With this acquisition, International Paper aims to strengthen its presence on the U.S. West Coast. The acquisition follows the company’s announcement that it will split into two publicly traded units in North America and EMEA following the completion of the acquisition and integration of DS Smith.
The Norpac paper mill in Longview is to be integrated into the existing production network with the aim of “increasing operational flexibility, reducing costs, and expanding capacity for recycled corrugated base paper,” according to IP.
