KapStone Paper and Packaging has agreed to buy US Corrugated in a deal worth $330m in order to increase its exposure to the containerboard market.
Under the contract, KapStone will acquire a 240,000t recycled containerboard paper mill in Cowpens, South Carolina, and 14 converting facilities in the eastern and mid-western US.
Go deeper with GlobalData
USC will sell another six facilities prior to closing.
KapStone chairman and CEO Roger Stone said the acquisition will increase the company’s exposure on the market.
He added that because USC is a net purchaser of 195,000t of containboard, the risk of costly economic downtime will be mitigated throughout the economic cycle.
See Also:
"Operating synergies are also expected to result in at least an additional $8m in profit improvement annually within the first 18 months," Stone said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataKapStone currently manufactures kraft paper products, linerboard.
Closing of the transaction is expected in late October but is subject to a number of customary conditions, including regulatory review and receipt of financing.
