Pregis to Sell Its Hexacomb Business to Boise for $125 Million

Oct. 4, 2011 - Pregis Corp. yesterday announced that it has entered into a definitive purchase agreement to sell its Hexacomb business unit to an affiliate of Boise Inc. for $125 million. Sales of the Hexacomb business for the twelve months ended August 31, 2011 were $109.8 million, with EBITDA (before unallocated corporate expenses) of $13.2 million.

The proceeds from the deal will be used to repay a portion of Pregis' asset-based lending facility and will be otherwise retained for debt repayment, general corporate purposes, and future reinvestment, Pregis said.

"I am pleased to announce the sale of our Hexacomb business. Jeff Kellar and his team have done an excellent job over the past few years in transforming Hexacomb into a dynamic, growth oriented company," said Glenn Fischer, president and CEO of Pregis.

"The sale of Hexacomb is part of Pregis' objective to optimize our overall business unit portfolio. I am confident that Hexacomb will continue to thrive under Boise's ownership," Fischer added.

Hexacomb is a supplier of paper-based protective packaging and serves key industries which value product protection coupled with environmental sustainability. This includes furniture, consumer, automotive, textile, food, building products, energy, glass, and industrial.

Hexacomb has twelve manufacturing plants, with nine in North America and three in Europe.

SOURCE: Pregis Corp.