KapStone Clears HSR for its Acquisition of Longview Fibre
June 28, 2013 - KapStone Paper and Packaging Corporation announced today that the U.S. Federal Trade Commission has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act") in connection with the previously announced acquisition of Longview Fibre Paper and Packaging, Inc. This means that the FTC and the Antitrust Division of the U.S. Department of Justice have completed their review of the submissions made by the parties in accordance with the rules promulgated under the HSR Act and determined not to take any enforcement action with respect to the proposed transaction during the HSR Act waiting period. The expiration or termination of the waiting period was a condition to the closing of the transaction.
As announced on June 10, 2013, KapStone Kraft Paper Corporation ("KapStone Kraft"), a wholly owned subsidiary of KapStone, Longview and certain affiliates of Brookfield Capital Management ("Brookfield") entered into an agreement for KapStone Kraft to acquire the stock of Longview from Brookfield in a cash free, debt free transaction for $1.025 billion in cash and subject to certain post-closing adjustments.
Closing of the acquisition is still subject to approval from the Federal Energy Regulatory Commission in response to the parties' joint application and other customary conditions. The transaction is expected to close in the third quarter of this year.
Headquartered in Northbrook, Illinois, KapStone Paper and Packaging Corporation is a leading North American producer of unbleached kraft paper and corrugated products. The Company is the parent company of KapStone Kraft Paper Corporation and KapStone Container Corporation which includes three paper mills and 15 converting plants across the Eastern and Midwestern US. The business employs approximately 2,700 people.
Longview is a leading integrated manufacturer of high-quality, lightweight, multiwall and specialty kraft papers and a leading integrated manufacturer of corrugated containers and containerboard in the Pacific Northwest region.
SOURCE: KapStone Paper and Packaging Corp