KapStone Clears HSR for Acquisition of Longview Fibre

KapStone Paper and Packaging Corp., Northbrook, Ill., USA, this past week announced that the U.S. Federal Trade Commission (FTC) has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act in connection with the previously announced acquisition of Longview Fibre Paper and Packaging. This means that the FTC and the Antitrust Division of the U.S. Department of Justice have completed their review of the submissions made by the parties and determined not to take any enforcement action with respect to the proposed transaction during the HSR Act waiting period. The expiration or termination of the waiting period was a condition to the closing of the transaction.

As announced on June 10, KapStone Kraft Paper Corp., a wholly-owned subsidiary of KapStone, agreed to acquire the stock of Longview from Brookfield Capital Management in a cash-free, debt-free transaction for $1.025 billion in cash and subject to certain post-closing adjustments. Closing of the acquisition is still subject to approval from the Federal Energy Regulatory Commission in response to the parties' joint application and other customary conditions. The transaction is expected to close in the third quarter of this year.

KapStone Paper and Packaging Corp. is a producer of unbleached kraft paper and corrugated products. The company is the parent company of KapStone Kraft Paper Corp. and KapStone Container Corp., which includes three paper mills and 15 converting plants across the Eastern and Midwestern U.S. The business employs approximately 2,700 people.

Longview is an integrated producer of lightweight multiwall and specialty kraft papers and corrugated containers and containerboard in the Pacific Northwest region.