Westvaco to Acquire IMPAC Group in $500 Million Deal

Paper manufacturer Westvaco(W Quote) said Monday it had agreed to acquire specialty packaging company IMPAC Group in a deal valued at $500 million.

The deal, which includes the assumption of $294 million in debt and preferred stock, is to be completed by the summer.

"Acquiring IMPAC is another important step in support of our strategy for global expansion in high-value consumer packaging markets," said John A. Luke, Jr., chairman and chief executive of New York-based Westvaco, in a statement. "This acquisition will immediately expand our market reach since IMPAC has very little overlap with our existing customer base and geographic presence."

The acquisition gives Westvaco the ability to expand its capability beyond paper-based products, Luke said.

Closely held IMPAC is based in Melrose Park, Ill. Richard H. Block, president and CEO, will head Westvaco's Consumer Packaging Group once the deal is completed. Among IMPAC's various products are printed paper inserts for CD and DVD packaging.

IMPAC has production facilities in the U.S. and Europe.

Westvaco fell in morning trading 5/16, or 1%, to 30 9/16. (Westvaco closed down 1/2, or 2%, at 30 3/8.)