Aug 21 (Reuters) - Packaging Corp of America :
* Packaging Corporation of America announces agreement to acquire Sacramento Container Corporation and conversion of Wallula Mill Paper Machine to high-performance 100% virgin linerboard
* Deal for $265 million
* Packaging Corp of America- Acquisition will be accretive to earnings immediately
* Packaging Corp of America - Company plans to finance transaction with available cash on hand.
* Packaging Corp Of America - Acquisition transaction is structured as a purchase of assets resulting in a full step-up of assets to fair market value
* Packaging Corp of America - Charges of $25 - $35 million are expected to be recorded in Q3 of 2017
* Packaging Corp of America - Will discontinue production of uncoated freesheet, coated one-side grades at Wallula, Washington Mill in Q2 of 2018
* Packaging Corp of America - Discontinuing paper operations at Wallula Mill will result in pre-tax cash severance, other shutdown charges of about $20 - $25 million
* Packaging Corp Of America - Discontinuing paper operations at Wallula Mill to result in about $45 million-$55 million pre-tax noncash asset impairment charges
* Packaging Corp of America - To also acquire 100% membership interests of Northern Sheets, Central California Sheets in a cash-free, debt-free transaction
* Packaging Corp of America - Capital cost of conversion of No. 3 Paper Machine at Wallula Mill is expected to be approximately $150 million Source text for Eikon: Further company coverage:
