International Paper (NYSE: IP), a global leader in sustainable packaging, has entered into a definitive agreement to acquire North Pacific Paper Company (NORPAC) for $360 million, a move that significantly expands its manufacturing and distribution capabilities on the U.S. West Coast. The all-cash transaction targets NORPAC, a portfolio company of One Rock Capital Partners, and underscores a strategic push to capitalize on the growing demand for packaging solutions in the region.
"This acquisition is a strategic step to enhance our service for the growing West Coast region," a company spokesperson for International Paper said in the press release. "NORPAC's integrated operations and strategic location will allow us to optimize our supply chain and better meet the needs of our customers."
The $360 million deal represents a significant investment for International Paper, though the company has stated it will be financed with cash on hand and is not expected to materially alter its balance sheet. The acquisition comes at a time of heightened M&A activity within the paper and packaging sector, which has seen companies consolidate to achieve greater scale and efficiency. The deal does not include a premium as NORPAC is a private company.
The transaction is expected to close by the end of 2026, subject to the customary regulatory approvals, including a review under the Hart-Scott-Rodino Act. For International Paper, the acquisition of NORPAC provides a critical foothold in the Pacific Northwest, a market it has been keen to penetrate more deeply. The move is projected to be accretive to earnings within the first year and will likely be viewed favorably by investors looking for strategic growth in a mature industry. The deal was advised by Goldman Sachs for International Paper and by Jefferies for One Rock Capital Partners.
This article is for informational purposes only and does not constitute investment advice.
