KapStone to Acquire U.S. Corrugated for $330M

KapStone Paper and Packaging Corporation KS today announced that it has signed an agreement to acquire the stock of U.S. Corrugated, Inc. for $330 million in cash and subject to certain post-closing adjustments. Closing of the acquisition is subject to a number of customary conditions, including regulatory review and receipt of financing. USC operates a 240,000 ton recycled containerboard paper mill in Cowpens, SC and 20 converting facilities in the eastern and mid-western United States. Six of such operating facilities will be disposed of by USC prior to the closing. Those facilities will remain under the management and control of Dennis Mehiel, Chairman of the Board and current majority stockholder of U.S. Corrugated. USC has been successful in creating strong, long-term customer relationships resulting from outstanding service, quality and innovation. In 2010, the operations to be acquired from USC generated $423 million in net sales.