International Paper to expand containerboard capacity with NORPAC acquisition

International Paper (IP) has entered into an agreement to acquire North Pacific Paper Company (NORPAC), a portfolio company of One Rock Capital Partners, for US$360 million. 

NORPAC, a US-based paper manufacturer, currently operates three machines that produce approximately one million tons of containerboard and other grades annually. 

The acquisition aims to complement IP’s existing mill system, enhancing system flexibility, cutting costs, and expanding capabilities to support growing customer demand for lightweight, high-performance recycled containerboard. 

Tom Hamic, executive vice president and president for Packaging Solutions North America at IP, says: “This acquisition is a strategic fit for our business and supports our long‑term value creation priorities.” 

“NORPAC’s attractive customer base, location, and operational capabilities strengthen our ability to serve customers in the growing West Coast region. We look forward to partnering with the mill team and its customers to deliver a safe, seamless integration.”

Transformation strategy

The acquisition of NORPAC is said to be part of IP’s transformation to increase value creation for customers, shareholders, and employees. The acquisition is subject to regulatory approval.

Tony Lee, co-founder and managing partner of One Rock Capital Partners, says: “NORPAC is a high-quality business built on the strength of its first-rate management team and employees. We believe this transaction with IP underscores the value created at NORPAC and positions the company for continued success as part of a larger platform.”

Last month, IP announced its plan to build a US$225 million facility in Mississippi, US.

Meanwhile, last year, the company closed two US packaging production sites in California and Kentucky after its DS Smith acquisition.