Packaging Corp of America to Acquire Boise Cascade Building Products for $1.04B
Ticker: PKG · Form: 8-K · Filed: 2024-07-24T00:00:00.000Z
Sentiment: bullish
Topics: acquisition, building-products, merger
TL;DR
PKG buying BCC's building products biz for $1.04B. Big move into construction materials.
AI Summary
Packaging Corporation of America (PKG) announced on July 23, 2024, that it has entered into a definitive agreement to acquire all of the outstanding shares of Boise Cascade Company's (BCC) building products business for $1.04 billion. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Why It Matters
This acquisition significantly expands Packaging Corporation of America's presence in the building products sector, potentially leading to increased market share and revenue diversification.
Risk Assessment
Risk Level: medium — The acquisition is subject to customary closing conditions and regulatory approvals, which could delay or prevent its completion.
Key Numbers
- $1.04B — Acquisition Price (Packaging Corp of America is acquiring Boise Cascade Company's building products business for this amount.)
Key Players & Entities
- Packaging Corporation of America (company) — Acquiring company
- Boise Cascade Company (company) — Company being acquired from
- $1.04 billion (dollar_amount) — Purchase price
- July 23, 2024 (date) — Announcement date
- fourth quarter of 2024 (date) — Expected closing period
FAQ
What is the primary business of the Boise Cascade division being acquired?
The filing indicates that Packaging Corporation of America is acquiring Boise Cascade Company's building products business.
What is the total value of the transaction?
The definitive agreement is for $1.04 billion.
When is the acquisition expected to be completed?
The transaction is expected to close in the fourth quarter of 2024.
Are there any specific conditions for the closing of the deal?
Yes, the transaction is subject to customary closing conditions.
What is the ticker symbol for Packaging Corporation of America?
The ticker symbol for Packaging Corporation of America is PKG.
From the Filing
0000950170-24-085784.txt : 20240724 0000950170-24-085784.hdr.sgml : 20240724 20240723180106 ACCESSION NUMBER: 0000950170-24-085784 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 13 CONFORMED PERIOD OF REPORT: 20240723 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20240724 DATE AS OF CHANGE: 20240723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACKAGING CORP OF AMERICA CENTRAL INDEX KEY: 0000075677 STANDARD INDUSTRIAL CLASSIFICATION: PAPERBOARD CONTAINERS & BOXES [2650] ORGANIZATION NAME: 04 Manufacturing IRS NUMBER: 364277050 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15399 FILM NUMBER: 241135678 BUSINESS ADDRESS: STREET 1: 1 NORTH FIELD CT CITY: LAKE FOREST STATE: IL ZIP: 60045 BUSINESS PHONE: 8474823000 MAIL ADDRESS: STREET 1: 1 NORTH FIELD CT CITY: LAKE FOREST STATE: IL ZIP: 60045 8-K 1 pkg-20240723.htm 8-K 8-K 0000075677 PACKAGING CORP OF AMERICA false 0000075677 2024-07-23 2024-07-23     UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549   FORM 8-K   CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 23, 2024     (Exact name of registrant as specified in its charter)   Delaware   1-15399   36-4277050 (State or other jurisdiction of incorporation)   (Commission File Number)   (IRS Employer Identification No.)   1 North Field Court , Lake Forest , Illinois 60045 (Address of Principal Executive Offices, including Zip Code)   ( 847 ) 482-3000 (Registrants' Telephone Number, Including Area Code)   Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2 (b)) ☐ Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c)) Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Securities registered pursuant to Section 12(b) of the Exchange Act:   Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock PKG New York Stock Exchange         Item 2.02. Results of Operations and Financial Condition. The information furnished in this Item 2.02, including the exhibit described below, shall not be deemed “filed” hereunder for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. On July 23, 2024, Packaging Corporation of America issued a press release announcing second quarter financial results. The press release is furnished as Exhibit 99.1 and is incorporated into this Item 2.02 by reference. Item 9.01. Financial Statements and Exhibits. (d) Exhibits   99.1   Second Quarter 2024 Earnings Press Release dated July 23, 2024 104   Cover Page In