Scrap Monster
Vulcan
Vulcan
Paper Recycling May 21, 2019 08:30:52 AM

Sonoco Acquires Recycled Paperboard Manufacturer for $110 Million

Paul Ploumis
ScrapMonster Author
The transaction is expected to close by third quarter this year.

Sonoco Acquires Recycled Paperboard Manufacturer for $110 Million

SEATTLE (Scrap Monster): Hartsville, South Carolina-headquartered diversified global packaging major Sonoco announced that it has signed a definitive agreement to acquire Corenso Holdings America, Inc. - a leading recycled paperboard manufacturer. The transaction is expected to close by third quarter this year.

As per agreement, Sonoco will acquire Corenso from a company owned by investment funds advised by Madison Dearborn Partners, LLC for nearly $110 million in cash. The acquisition is not expected to bring in changes in operating leadership and customer relationships, sources close to the deal said.

ALSO READ: Sonoco's Robust Q1 Earnings Exceeded High End of Guidance

Rob Tiede, President and Chief Executive Officer, Sonoco, in a statement, noted that Corenso’s capability to produce a wide variety of coreboard grades and its long-term partnerships with customers will create long-term opportunity for Sonoco. Corenso makes 100% of its products from recycled raw materials. This will further boost Sonoco’s sustainability efforts, he added. 

Coresnso is a leading manufacturer of uncoated recycled paperboard and high-performance cores used in the paper, packaging films, tape and specialty industries. It operates a 108,000 per year uncoated recycled paperboard mill in Wisconsin Rapids, Wis. and two core converting facilities in Wisconsin Rapids and Richmond, Va. All these facilities together employ approximately 175 people. Also, the company had recorded net sales of around $75 million during the previous year.

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox