KapStone to Acquire Victory Packaging for USD 615m.
6 May 2015 - US-based packaging company KapStone Paper and Packaging Corp. (NYSE: KS) has agreed to acquire US-based Victory Packaging/Golden State Container in a cash-free, debt-free transaction for USD 615m in cash, subject to post-closing adjustments.
In addition, two contingent earnouts totaling USD 45m could be payable two and a half to four years after the close and are based on the continued strong growth of the business.
Closing of the acquisition is subject to a number of customary conditions, including regulatory review.
The structure of the transaction will enable KapStone to realise a tax benefit that has an estimated net present value of approximately USD 100m.
Taking this benefit into account, the net purchase is about USD 515m.
Founded in 1976, Victory Packaging, headquartered in Houston, TX, is a national distributor of all types of packaging.
The company operates through its 65 distribution centres located in the United States, Mexico and Canada.
Victory's net sales grew to USD 953m and adjusted EBITDA reached USD 55m for the year ended December 31, 2014, and the CAGR for both net sales and adjusted EBITDA was in excess of 14% for the past four years.
KapStone said it has committed financing from Bank of America, Barclays Bank, and Wells Fargo Bank.
The transaction is expected to close in 2Q15.
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corp. is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States.
Sector: Paper/Packaging/Office Supplies
Target: Victory Packaging/Golden State Container
Buyer: KapStone Paper and Packaging Corp
Deal size in USD: 615m
Type: Corporate Acquisition
Buyer advisor: , ,
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|Publication:||M & A Navigator|
|Date:||May 6, 2015|
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