Packaging Corporation of America (NYSE:PKG) entered into a definitive agreement to acquire Substantially All of the Assets of Advance Packaging Corporation for $189 million on October 22, 2021. The transaction is a cash-free transaction. The transaction will be financed from available cash on hand. Under the terms of the agreement, PCA will acquire a modern full-line 500,000 square foot corrugated products facility located in Grand Rapids, Michigan. The transaction is structured as a purchase of assets resulting in a full step-up of the assets to fair market value. The transaction is subject to certain customary conditions and regulatory approval. The transaction is expected to close in later this quarter. The acquisition is expected to be accretive to earnings immediately with a bottom line purchase price multiple similar to the average of our last 4 acquisitions.

Packaging Corporation of America (NYSE:PKG) completed the acquisition of Substantially All of the Assets of Advance Packaging Corporation on December 31, 2021.