Dive Brief:
- International Paper has agreed to acquire North Pacific Paper Co. from private equity firm One Rock Capital Partners for $360 million. Norpac operations will be rolled into the IP system, a spokesperson said via email.
- Longview, Washington-based Norpac operates a paper mill that produces about 1 million tons of containerboard and other grades annually. It has approximately 500 employees.
- The parties expect the deal to close by the third quarter, the spokesperson said, subject to regulatory approval.
Dive Insight:
Norpac has been a portfolio company of New York-based One Rock for nearly a decade. The company was established in 1976 as a joint venture between Nippon Paper Industries of Japan and forest products company Weyerhauser, and it previously specialized in newsprint. In 2021, Norpac announced it would expand its Longview operations to start producing recycled paper for packaging and other markets, partly in response to the effects of China’s National Sword policy.
As for the mill’s next era, IP says the site will complement its existing mill system and increase flexibility while reducing costs. International Paper maintains multiple other packaging production and recycling sites in Washington and neighboring Oregon.
“NORPAC's attractive customer base, location and operational capabilities strengthen our ability to serve customers in the growing West Coast region,” said Tom Hamic, International Paper executive vice president and president of packaging solutions for North America, in the announcement. The company also touted “industry-leading machinery” at the Norpac mill.
The acquisition is part of IP’s “strategic transformation to maximize value creation,” according to a news release.
IP has been executing this transformation for nearly two years, since CEO Andy Silvernail joined the company in 2024. Silvernail’s strategy has involved closing numerous facilities and will have resulted in more than 5,400 layoffs through this year. During the first quarter of 2026, executives suggested that the downsizing would taper this year and IP would transition to strategic investments, including preparations for splitting the company into two geographically distinct publicly traded companies.
In March 2025, executives projected spending $1.9 billion per year in capital expenditures through 2027. Silvernail has repeatedly mentioned the company’s prioritization of investments to improve the box plant network.
In March, IP announced it would spend $225 million to build a 468,000-square-foot greenfield box plant in Brandon, Mississippi. Construction is slated to begin in June, and operations are estimated to begin in late 2027. IP also anticipates additional capacity from a greenfield box plant in Waterloo, Iowa, that it announced in January 2025, which is slated to come online later this year.
