Boston, MA 06/11/2013 (wallstreetpr) – The share prices of KapStone Paper and Packaging Corp (NYSE:KS) had surged to new high levels owing to the news of the company acquiring the stock of Longview Fiber Paper and Packaging Inc. The share prices of the company had closed at $35.04 per share on Monday, which was observed to be an increase of 17.90 percent over the previous close for the weekend. The shares of KapStone Paper and Packaging Corp (NYSE:KS) had thereby hit new 52 week high price level in the intraday trading at $35.76 per share, while the 52 week low price level for the company is at $14.82 per share.
Acquisition of Longview Fiber Paper and Packaging Inc
KapStone Paper and Packaging Corp (NYSE:KS) had announced on Monday that it had signed an agreement with Longview Fiber Paper and Packaging Inc. to acquire its stocks for $1.025 billion in cash. The stocks of the company are presently held by Brookfield Capital Partners II, a private equity fund managed by Brookfield Asset Management Inc. The closure of acquisition by KapStone Paper and Packaging Corp (NYSE:KS) would be subject to regulatory review and various other post closure conditions.
The acquisition of Longview Fiber Paper and Packaging Inc. which is primarily engaged in manufacturing quality container board, light weight high performance multi wall paper, Specialty Kraft paper and corrugated containers would provide KapStone Paper and Packaging Corp (NYSE:KS) to further strengthen its balance sheet which is already with strong numbers. It would also enable the company to deliver substantial free cash flow within one year of acquisition and would thereby enable KapStone Paper and Packaging Corp (NYSE:KS) to quickly de-lever the company.
KapStone Paper and Packaging Corp (NYSE:KS) presently holds 47.52 million shares outstanding in the market with an institutional ownership of 81 percent of its holdings. The company witnessed the trade of 1.45 million shares on Monday, while the average trading volume is at 199,839 shares per day.
