Kapstone to Acquire Longview Fibre

KapStone Paper and Packaging and Longview Fibre Paper and Packaging, have signed an agreement for KapStone to acquire the stock of Longview from Brookfield Capital Partners II, a private equity fund managed by Brookfield Asset Management in a cash free, debt free transaction for 1.025 billion USD, 6,7 billion SEK, in cash.

Closing of the acquisition is subject to a number of customary conditions, including regulatory review.

Longview's operations include a mill located in Longview, Washingon equipped with five paper machines which produce 1.15 million tons of containerboard and Kraft paper annually.

In 2012, Longview generated 831 million USD in net sales.

"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", says Chairman and Chief Executive Officer of KapStone, Roger W. Stone.