Global packaging company Sonoco has entered a definitive agreement to purchase US supplier Corenso Holdings America (CHA) for around $110m in cash.
The deal was signed with a company owned by investment funds advised by Madison Dearborn Partners and management.
Corenso produces uncoated recycled paperboard (URB) and high-performance cores for paper, packaging films, tape, and speciality industries. It generated net sales of approximately $75m last year.
The company currently operates an uncoated recycled paperboard facility in Wisconsin Rapids, which has a production capacity of 108,000t per annum. It also has two core converting facilities in Wisconsin Rapids and Richmond, Virginia.
The packaging firm currently employs a total of approximately 175 associates at the three facilities.
Sonoco president and CEO Rob Tiede said: “The acquisition of Corenso Holdings America creates a long-term opportunity for Sonoco as CHA operates a best-in-class uncoated recycled paperboard mill that is capable of producing a wide variety of coreboard grades, in addition to providing attractive core converting assets and long-term partnerships with customers.
“Along with its attractive assets and customer mix, 100% of Corenso Holdings America products are made from recycled raw materials, which further enhances Sonoco’s sustainability commitment to increase by weight the amount we recycle or cause to be recycled up to 85% relative to the volume of products we put into the global marketplace by 2025.”
The deal is currently subject to normal regulatory review and will close in the third quarter of this year.
Sonoco will not make changes in operating leadership and customer relationships of Corenso.
In October, Sonoco acquired the remaining 70% interest in Conitex Sonoco, which was set up in a joint venture (JV) with Spanish firm Texpack.