Global packaging company Sonoco has closed the deal to purchase US supplier Corenso Holdings America (CHA) for approximately $110m.
CHA was acquired from a company owned by investment funds advised by Madison Dearborn Partners and management. The parties signed a definitive agreement in May.
Sonoco president and chief executive officer Rob Tiede said: “We are extremely pleased to welcome Corenso Holdings America to Sonoco.
“This transaction 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.”
Sonoco used available cash and short-term borrowings to fund the transaction.
The packaging firm does not intend to make any changes to the operating leadership and customer relationships of CHA. It also noted that CHA’s financial results will be reported within its Paper / Industrial Converted Products segment.
Corenso, which employs a total of approximately 175 associates at the three facilities, produces uncoated recycled paperboard (URB) and high-performance cores for paper, packaging films, tape and speciality industries.
CHA has an uncoated recycled paperboard facility in Wisconsin Rapids, as well as two core converting facilities in Wisconsin Rapids and Richmond, Virginia, US.
Established in 1899, Sonoco offers consumer packaging, industrial products, protective packaging and displays and packaging supply chain services. It has 23,000 employees working in 300 operations in 36 countries.