Boise expects the $125m all-cash transaction to close by year end 2011 or early 2012.
Alexander Toeldte, president and CEO of Boise, said: “Our acquisition of Hexacomb presents another excellent opportunity to expand in packaging markets and create value for our shareholders and customers, building on our acquisition of Tharco earlier this year. Hexacomb has demonstrated strong growth in both sales and profitability, with compound annual sales growth over 10% since 2009.
“Hexacomb operates in a growing market that is complementary to our existing packaging business and provides another substantial step up in vertical integration within our existing packaging business, creating value by increasing margins and reducing our reliance on linerboard export markets. As a leader in honeycomb protective packaging, Hexacomb provides a solid platform for additional growth both domestically and internationally.
“We expect annualised synergies of approximately $5m, achieved primarily through increased integration along with targeted cost savings and incremental growth. We anticipate these synergies will be fully realised in 24 months. The acquisition will be financed using cash on hand, and we expect the transaction to be accretive to our earnings in the first twelve months.”
Source: Boise
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