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Packaging Corp Acquires Boise

Packaging Corp of America (NYSE:PKG), the marker of containerboard and corrugated packaging products has reached an agreement to acquired Boise Inc. (NYSE:BZ), a smaller rival for $1.28 billion, which roughly equivalent to $12.55 per share in cash for all the outstanding common shares of Boise. In addition, Packaging Corp will assume $714 million of Boise’s outstanding debts.  According to the press release from the Packaging Corp, the deal will increase its containerboard capacity by 42 percent and expand the company’s present in the Pacific Northwest market.

On news of the acquisition, both companies are trading higher. Packaging Corp is up above 6 percent, while Boise is up a whopping 26 percent in current trading.