International Paper has entered into an agreement to acquire North Pacific Paper Company from One Rock Capital Partners in a deal valued at $360m. The NORPAC acquisition centres on a paper mill located in Longview, Washington, US, which serves as a key production site for containerboard and related paper grades.
The Longview facility operates with a workforce of approximately 500 employees and houses three paper machines, collectively producing close to one million tonnes annually. One Rock Capital Partners co-founder and managing partner Tony Lee said: “NORPAC is a high-quality business built on the strength of its first-rate management team and employees. We are proud to have achieved together a years-long transformation of NORPAC during our ownership. We believe this transaction with International Paper underscores the value created at NORPAC and positions the company for continued success as part of a larger platform.”
For International Paper, the acquisition is expected to enhance its manufacturing footprint and strengthen its ability to respond to demand for lightweight recycled containerboard. The company indicated that integrating the mill into its broader network would improve operational flexibility and contribute to cost efficiencies. International Paper Packaging Solutions North America executive vice-president and president Tom Hamic said: “This acquisition is a strong strategic fit for our business and supports our long-term value creation priorities. NORPAC’s attractive customer base, location and operational capabilities strengthen our ability to serve customers in the growing West Coast region. We look forward to partnering with the mill team and its customers to deliver a safe, seamless integration.”
The transaction remains subject to regulatory clearance. The NORPAC acquisition comes as the company advances its previously announced plan to separate its operations into two independently listed businesses. Under this structure, its North American operations will continue under the International Paper name, while packaging activities across Europe, the Middle East and Africa will be spun off into a separate entity. The North American business is set to include assets from both International Paper and DS Smith, following last year’s acquisition.