Shares of Northbrook’s KapStone Paper and Packaging Corp. hit a new high on Monday after it announced a plan to buy Longview Fibre Paper and Packaging for $1.03 billion in cash.
Longview is owned by private equity firm Brookfield Asset Management. The Washington State-based company makes about 1.2 million tons of Kraft paper and containerboard a year.
The deal is subject to regulatory approval and other conditions. It’s expected to close this summer.
KapStone said the deal will allow it to expand into the containerboard segment while providing an immediate boost to earnings.
KapStone shares jumped about 18 percent Monday, hitting its higest point since its founding in 2005. The stock closed at $35.04, up 17.9 percent, after hitting an intraday high of $35.74.
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