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Packaging Corp Acquires Boise Inc.

Packaging Corp of America (NYSE: PKG) has agreed to acquire its rival packaging and paper products company, Boise Inc. (NYSE: BZ) in deal estimated at $1.28 billion. According to the terms of the agreement, Packaging Corp will offer $12.55 a share, which represents a premium of 26% to Boise’s Friday closing stock price. Shares of both companies soared after the announcement. Packaging Corp, which is the fourth largest containerboard and corrugated packaging products maker in the U.S., said that the deal also assumes Boise’s debt, estimated at $714 million. Packaging Corp said that the acquisition will immediately boost its earnings and increasing its containerboard capacity by 42% to 3.7 million tons.

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