NEW YORK, June 10 (Reuters) - KapStone Paper and Packaging Corp said on Monday it struck a deal to buy Longview Fibre Paper and Packaging Inc for $1.03 billion in cash, in a move to bulk up its production of containerboard used in making cardboard boxes.
Longview is currently owned by a private equity fund run by Brookfield Asset Management Inc. It had $118 million of earnings before interest, taxes, depreciation and amortization in 2012 and $42 million of EBITDA in the first quarter of 2013.
KapStone will not take on any of Longview’s debt or cash on hand as part of the deal, the company said in its statement. It expects about $10 million of cost savings within the first 18 months of acquiring Longview.
KapStone, which expects the deal to close this summer, said it has committed financing from Bank of America Corp, Barclays Plc, and Wells Fargo & Co.