Posted at: 09/16/2013 10:17 AM
Updated at: 09/16/2013 10:58 PM
By: Maarja Anderson
Boise Inc., which owns the International Falls paper mill, announced Monday that the company is being sold to Packaging Corporation of America.
According to the release, PCA will buy Boise for a value of $1.995 billion. The transaction is expected to close by the end of the year.
Lori Lyman, the public affairs manager at the International Falls mill, told Eyewitness News the acquisition will not change the May announcement of 265 layoffs.
Mayor of International Falls, Bob Anderson, said Boise will continue to be the largest employer of both the city and the county after the layoffs.
Anderson said the announcement of the sale came as a surprise, but the mill has seen several different owners over the years and the community will take the change in stride.
"The mill at the end of this month is going to continue with some of the layoffs that they announced in May. We expect those will go forward and we can look for a new employer in the fourth quarter," said Anderson.
In a prepared statement, PCA Executive Chairman Paul Stecko said, "The acquisition is an excellent fit, both geographically and strategically, with unique and substantial synergies."
Boise Board Chair Carl Albert said, "Our Board and management team have thoroughly evaluated a broad range of strategic options for Boise, and we believe this transaction is the best way to maximize value for our shareholders."