International Paper acquires NORPAC

International Paper has agreed to acquire North Pacific Paper Company (NORPAC) for $360 million, an acquisition aimed at addressing increased demand for lower basis weight recycled containerboard. NORPAC is a portfolio company of One Rock Capital Partners, and the acquisition underscores International Paper's strategy to enhance its product offerings and operational capabilities in the recycled paper sector.

NORPAC operates from a facility in Longview, Washington, where it manages three paper machines and has an annual production capacity of about one million tons of containerboard and other paper grades. The acquisition is expected to enhance International Paper’s mill system by improving operational flexibility and reducing costs while expanding its production capacity to meet the growing demand for high-performance recycled papers. The completion of the acquisition is pending regulatory approval.

Tom Hamic, Executive Vice President and President of Packaging Solutions North America at International Paper, emphasized the strategic alignment of the acquisition with the company's long-term value creation priorities. He noted that NORPAC's customer base, strategic location, and operational strengths would enhance International Paper’s service capabilities, particularly in the competitive West Coast market.

This acquisition comes on the heels of International Paper's recent activities in the paper and packaging sector, including its acquisition of DS Smith, a transaction that bolstered its position in the corrugated packaging industry. The NORPAC acquisition further consolidates International Paper's strategy to expand its footprint in environmentally sustainable products, reflecting broader industry trends toward recycled materials and sustainability.

Looking ahead, the acquisition's successful integration will be critical, with regulatory clearances still pending. International Paper's planned operational separation into geographically organized entities from last year also continues to evolve, potentially influencing how the acquired assets will be managed. The focus will remain on integrating NORPAC seamlessly into International Paper's broader portfolio, enhancing both product offerings and market competitiveness.