International Paper Acquires North Pacific Paper for $360M

International Paper has acquired North Pacific Paper Company (NORPAC) from One Rock Capital Partners for $360 million. This acquisition aims to meet growing demand for lower basis weight recycled containerboard, a key area of expansion for the company. The deal underscores International Paper's focus on bolstering its capabilities in producing high-performance recycled containerboard to better serve its markets.

NORPAC operates in Longview, Washington, and runs three paper machines, producing approximately one million tons of containerboard and other paper grades annually. The facility is strategically aligned to enhance International Paper's existing operations by increasing flexibility, enabling cost efficiencies, and boosting production capacity. However, the acquisition is subject to regulatory clearance before it can be finalized.

Tom Hamic, Executive Vice President and President of Packaging Solutions North America at International Paper, highlighted the acquisition's strategic fit. He emphasized that NORPAC's customer base, geographical location, and operational strengths would enhance International Paper's services, particularly in the expanding West Coast market. Tony Lee of One Rock Capital Partners noted the successful transformation of NORPAC under their ownership and expressed confidence that the acquisition positions the company well for future growth under International Paper's umbrella.

This move comes as International Paper continues to restructure and streamline its operations. Previously, the company acquired DS Smith to enhance its corrugated packaging division, further integrating significant containerboard production into its system. The NORPAC acquisition signifies International Paper's ongoing efforts to strengthen its market position amid rising demand for sustainable paper products.

The acquisition's completion is contingent upon securing the necessary regulatory approvals. As International Paper continues its operational separation into two independent entities based on geographic regions, this transaction could serve to optimize its North American division's structure and operational model, paving the way for strategic growth and investment.