International Paper acquires NORPAC for US$360M, adding 1MT of containerboard capacity

USA – International Paper has agreed to acquire North Pacific Paper Company from One Rock Capital Partners for US$360 million, adding a Longview, Washington mill with 500 employees and three paper machines producing approximately one million tonnes of containerboard and other paper grades annually.

The acquisition is expected to improve operational flexibility, reduce costs, and widen International Paper’s ability to meet demand for lightweight recycled containerboard. The transaction remains subject to regulatory clearance.

The Longview mill’s one million tonnes of annual containerboard capacity will strengthen International Paper’s presence on the West Coast, a region where the company has historically had less manufacturing footprint compared to the US South and Midwest.

Containerboard is the corrugated material used to make shipping boxes, which have seen sustained demand growth from e-commerce, food delivery, and retail distribution.

Lightweight recycled containerboard is particularly valuable as brands seek to reduce packaging weight and increase recycled content to meet sustainability targets.

A Transformed Asset

Tony Lee, co-founder and managing partner of One Rock Capital Partners, explained that NORPAC is a high-quality business built on the strength of its first-rate management team and employees.

He noted that the partnership achieved a years-long transformation of NORPAC during their ownership and believes the transaction with International Paper underscores the value created at NORPAC, positioning the company for continued success as part of a larger platform.

Strategic Fit with International Paper’s Restructuring

The acquisition comes as International Paper executes a broader restructuring plan announced earlier this year.

The company plans to separate its operations into two independently listed entities: the North American business will continue under the International Paper name, while its packaging operations across Europe, the Middle East, and Africa will be spun off into a separate entity.

The North American business will include assets from International Paper and DS Smith, which the company acquired last year.

Tom Hamic, executive vice-president and president of International Paper Packaging Solutions North America, explained that this acquisition is a strong strategic fit for the business and supports the company’s long-term value creation priorities.

He noted that NORPAC’s attractive customer base, location, and operational capabilities strengthen International Paper’s ability to serve customers in the growing West Coast region.

When a Mill Changes Hands

One million tonnes of containerboard. Five hundred employees.

One strategic location on the West Coast. International Paper’s US$360 million bet on NORPAC is not about acquiring a struggling asset, it is about securing capacity in a region where box demand is growing and supply is tight.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE