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Longview Fibre To Be Acquired By KapStone
Northbrook, Il ( KMVT-TV / KTWT-TV ) - KapStone Paper has announced that they are in the process of acquiring Longview Fibre. Longview Fibre has a plant in Twin Falls. Both companies are a paper and packaging company. Chairman and Chief Executive Officer of KapStone, Roger W. Stone, said, “Acquiring Longview is an outstanding opportunity for numerous reasons. The acquisition immediately adds value for our shareholders by increasing earnings and generating very strong free cash flow. The deal is accretive to our bottom-line from Day 1. Our balance sheet, which was strong going into this transaction, remains strong after the acquisition. The combined company is expected to deliver substantial free cash flow in the first year allowing KapStone to quickly delever.” “This acquisition will increase our exposure to the highly desirable containerboard segment. It also broadens our Kraft paper line and makes KapStone a global producer of high performance extensible multiwall paper, a grade which is growing at about 4% per year.”
Financial details of the acquisition has not been released.