Pregis to Sell Hexacomb to Boise

Pregis Corp., Deerfield, Ill., USA, this week announced that it will sell its Hexacomb business unit to an affiliate of Boise Inc, Boise, Idaho, for $125 million. Sales of the Hexacomb business for the 12 months ended August 31, 2011, were $109.8 million, with EBITDA (before unallocated corporate expenses) of $13.2 million. Proceeds from the transaction will be used to repay a portion of Pregis' asset-based lending facility and will be otherwise retained for debt repayment, general corporate purposes, and future reinvestment.

Hexacomb is a supplier of paper-based protective packaging used by industries including furniture, consumer, automotive, textile, food, building products, energy, glass, and industrial. Hexacomb has 12 manufacturing plants, with nine in North America and three in Europe.

Pregis is a producer of protective, flexible, and foodservice packaging, as well as hospital supply products. It currently operates 46 facilities in 18 countries around the world.

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