KapStone Paper and Packaging Corporation and Victory Packaging/Golden State Container jointly announce that they have signed an agreement for KapStone to acquire the assets of Victory Packaging in a cash-free, debt-free transaction for $615 million in cash, subject to post-closing adjustments. In addition, two contingent earnouts totaling $45 million could be payable two and a half to four years after the close and are based on the continued strong growth of the business.
Closing of the acquisition is subject to a number of customary conditions, including regulatory review.
The structure of the transaction will enable KapStone to realize a tax benefit that has an estimated net present value of approximately $100 million. Taking this benefit into account, the net purchase is
Victory Packaging, headquartered in Houston, Texas, is a large, national distributor of all types of packaging specializing in providing unique solutions for its clients.
