Packaging Corp Of America
Packaging Corporation of America is the fourth largest producer of containerboard
products and the third largest producer of uncoated freesheet in the United States,
based on production capacity. We operate five containerboard mills, three paper
mills and 94 corrugated products manufacturing plants. We are headquartered in
Lake Forest, Illinois and operate primarily in the United States.
During 2016, we made two acquisitions in our corrugated products business:
Tim-Bar Corporation ("TimBar") and Columbus Container, Inc. ("Columbus
Container"). On August 29, 2016, we acquired substantially all of the assets
of TimBar, a large independent corrugated products producer with six corrugated
products production facilities. TimBar provides solutions to customers in the
higher-margin retail, industrial packaging and display and fulfillment markets
with a focus on multi-color graphics and technical innovation. On November 30,
2016, we acquired substantially all of the assets of Columbus Container for
a purchase price of $100 million. Columbus Container is a full-service provider
of corrugated packaging products, with a full-line corrugated products plant,
warehousing facilities, and other related operations located in Indiana and
Illinois. We used available cash on hand to purchase Columbus Container. The
operating results of TimBar and Columbus Container are included in our results
and reported in the Packaging segment from and after the respective dates of
acquisition. These acquisitions will accelerate the growth strategy and increase
the containerboard integration level in our Packaging segment.
Our corrugated products are sold through a direct sales and marketing organization,
independent brokers, and distribution partners. We have sales representatives
and a sales manager at most of our corrugated manufacturing operations and also
have corporate account managers who serve customer accounts with a national
presence. Additionally, our design centers maintain an on-site dedicated graphics
sales force. In addition to direct sales and marketing personnel, we utilize
new product development engineers and product graphics and design specialists.
These individuals are located at both the corrugated plants and the design centers.
General marketing support is located at our corporate headquarters.
Our containerboard sales group is responsible for the coordination of linerboard
and corrugating medium sales to our corrugated plants, to outside domestic customers,
and to export customers. This group handles order processing for all shipments
of containerboard from our mills to our corrugated plants. These personnel also
coordinate and execute all containerboard trade agreements with other containerboard
manufacturers.
Containerboard produced in our mills is shipped by rail or truck. Our corrugated
products are delivered by truck due to our large number of customers and their
demand for timely service. Our corrugated manufacturing operations typically
serve customers within a 150-mile radius. We sometimes use third-party warehouses
for short-term storage of corrugated products.
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