NEW YORK, June 10 (Reuters) - KapStone Paper and PackagingCorp said on Monday it struck a deal to buy LongviewFibre Paper and Packaging Inc for $1.03 billion in cash, in amove to bulk up its production of containerboard used in makingcardboard boxes.
Longview is currently owned by a private equity fund run byBrookfield Asset Management Inc. It had $118 millionof earnings before interest, taxes, depreciation andamortization in 2012 and $42 million of EBITDA in the firstquarter of 2013.
KapStone will not take on any of Longview's debt or cash onhand as part of the deal, the company said in its statement. Itexpects about $10 million of cost savings within the first 18months of acquiring Longview.
KapStone, which expects the deal to close this summer, saidit has committed financing from Bank of America Corp,Barclays Plc, and Wells Fargo & Co.