August 21, 2017 / 4:52 PM / a month ago

BRIEF-Packaging Corporation of America announces agreement to acquire Sacramento Container Corp

Aug 21 (Reuters) - Packaging Corp of America :

* Packaging Corporation of America announces agreement to acquire Sacramento Container Corporation and conversion of Wallula Mill Paper Machine to high-performance 100% virgin linerboard

* Deal for ‍$265 million​

* Packaging Corp of America- ‍Acquisition will be accretive to earnings immediately​

* Packaging Corp of America - ‍Company plans to finance transaction with available cash on hand.​

* Packaging Corp Of America - ‍Acquisition transaction is structured as a purchase of assets resulting in a full step-up of assets to fair market value​

* Packaging Corp of America - ‍Charges of $25 - $35 million are expected to be recorded in Q3 of 2017

* Packaging Corp of America - ‍ Will discontinue production of uncoated freesheet, coated one-side grades at Wallula, Washington Mill in Q2 of 2018​

* Packaging Corp of America - ‍Discontinuing paper operations at Wallula Mill will result in pre-tax cash severance, other shutdown charges of about $20 - $25 million​

* Packaging Corp Of America - ‍Discontinuing paper operations at Wallula Mill to result in about $45 million-$55 million pre-tax noncash asset impairment charges

* Packaging Corp of America - To also acquire 100% membership interests of Northern Sheets, Central California Sheets in a cash-free, debt-free transaction​

* Packaging Corp of America - ‍ Capital cost of conversion of No. 3 Paper Machine at Wallula Mill is expected to be approximately $150 million​ Source text for Eikon: Further company coverage:

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