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Fibre Sale Closes

Posted on 19th July 2013 at 16:08

As of yesterday, Illinois-based KapStone Paper and Packaging closed on its purchase of Longview Fibre Paper and Packaging, completing a deal valued at $1.03 billion dollars. In a written statement, KapStone Chairman and CEO Roger W. Stone says that they’re now welcoming Longview’s team at the newest members of KapStone. He also says that the group in Longview orchestrated a transformation that is “the most amazing” that he’s seen in 55 years in the industry, and they’re “thrilled and delighted” to have these people with them. KapStone also released some of the latest performance figures from the Longview operation, noting that they had $228 million in revenues in the second quarter, and an adjusted cash flow of $49 million. KapStone officials say that this gave the Longview Fibre operation an adjusted margin of 20.7 percent, which is one of the best in the industry. KapStone is financing the purchase through several banks; they’re also announcing plans to redeem $480 million in outstanding notes that are under Longview Fibre’s name, expecting to complete that process in the next 30 days. The process of changing over to the KapStone name is under way, with a flag flying at the mill entry on Fibre Way, and “Pleased to be KapStone” flashing on the company readerboard. At this time, the company plans to continue operating the Longview mill as normal, seeing this acquisition as their entry into the West Coast paper markets.