International Paper’s $360M North Pacific Paper Company (NORPAC) Purchase
International Paper (IP) has finalized a definitive agreement to acquire North Pacific Paper Company (NORPAC) from private equity firm One Rock Capital Partners for $360 million, a move that’s set to supercharge its industrial packaging dominance in the U.S. Read the official announcement here.
Nestled in Longview, Washington—a hub for Pacific Northwest forestry—the NORPAC mill brings five decades of proven production muscle, operating three industry-leading machines that pump out roughly one million tons of containerboard and specialty paper grades annually. With a dedicated workforce of about 500, the facility excels in crafting lightweight, recycled packaging papers that minimize environmental impact, drawing on regional timber resources and recycling streams to meet the forestry industry’s shift toward circular economies.
IP’s leadership views this as far more than a simple asset grab. “This acquisition is a strong strategic fit that supports our long-term value creation,” stated IP executives in the deal announcement, highlighting how NORPAC slots perfectly into their mill network. The West Coast location unlocks direct access to a fast-growing market, leveraging the mill’s established customers and proximity to key shipping routes for seamless supply chain integration.
Operationally, expect synergies like boosted system flexibility and trimmed costs, as IP optimizes NORPAC alongside its existing assets. Crucially, the mill’s focus on high-performance recycled containerboard positions IP to capitalize on surging demand for sustainable alternatives, where lightweight designs cut fiber use and transportation emissions—a boon for forest managers balancing harvest yields with eco-stewardship. More on the strategic fit.
On the financial front, International Paper enters this deal with robust liquidity, holding $1.145 billion in cash and temporary investments at year-end 2025, ensuring the $360 million price tag fits comfortably within its balance sheet. Wall Street remains optimistic, assigning a consensus “Buy” rating and an average price target of $44.25, despite modest target cuts from firms like Truist, Citigroup, and UBS earlier this month. Investors will get a clearer picture soon, with IP’s Q1 2026 earnings slated for April 30.
This transaction arrives amid broader market tailwinds for paper and packaging, where U.S. containerboard demand continues climbing, fueled by e-commerce and a pivot away from plastics.
The NORPAC deal dovetails with IP’s sweeping corporate reinvention, including a planned split into two independent, publicly traded powerhouses. The retained North American business—still branded International Paper—will absorb NORPAC, alongside legacy U.S. mills and the 2025 DS Smith acquisition, creating a streamlined giant focused on domestic growth. Simultaneously, EMEA packaging operations will spin off into a new entity, sharpening IP’s edge in core markets.
IP has been making several
“By enhancing our West Coast presence, we’re not just growing capacity—we’re future-proofing sustainable supply chains,” echoes sentiment from industry observers covering the restructuring. Deal details and timeline. Subject to regulatory approval, this acquisition reinforces IP’s role as a forestry-to-packaging leader, prioritizing recycled content and efficiency in an era of heightened environmental scrutiny.
