| 2017-08-21 12:37:33|
IP, PKG… 12:37 08/21 08/21/17
Containerboard stocks fall after Packaging Corp buys Sacramento Container
Shares of International Paper (IP) are trading lower in a volume spike on Monday after competitor Packaging Corp. (PKG) announced it was acquiring substantially all of the assets of Sacramento Container Corporation, and 100% of the membership interests of Northern Sheets and Central California Sheets in a cash-free, debt-free transaction for a cash purchase price of $265M. Additionally, Packaging Corporation of America announced that it will discontinue production of uncoated freesheet and coated one-side grades at its Wallula, Washington mill in the second quarter of 2018 to begin the conversion of its 200,000 ton-per-year No. 3 paper machine to a 400,000 ton-per-year high-performance 100% virgin kraft linerboard machine. Shares of International and Packaging Corp are both down over 1% to $53.61 and $108.61 per share respectively in midday trading. OTHERS: Other companies in the container board space, including KapStone (KS) and WestRock (WRK), are also lower.
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