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LAKE FOREST, Ill. -- Packaging Corp. of America is buying Boise for about $1.27 billion, acquiring additional containerboard needed to support its growth.

Boise, a maker of packaging and paper products, is based in Boise, Idaho.

If the deal is completed, Packaging Corp.'s containerboard capacity will rise to 3.7 million tons from 2.6 million tons.

Lake Forest, Ill.-based Packaging Corp. will pay $12.55 per share, a 26 percent premium to Boise Inc.'s 9.96 Friday closing price.

The companies put the deal's total value at approximately $2 billion, which includes $714 million of Boise's outstanding debt.

Boise currently has about 100.9 million outstanding shares, according to FactSet.

The transaction is anticipated to immediately add to earnings.

Both companies' boards unanimously approved the acquisition, which is expected to close in the fourth quarter.

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