Sonoco, Hartsville, South Carolina, has signed a definitive agreement to acquire Wisconsin-based Corenso Holdings America Inc. (CHA). CHA manufactures uncoated recycled paperboard and high-performance cores used in the paper, packaging films, tape and specialty industries. According to a news release from Sonoco, the transaction is subject to normal regulatory review and is expected to close in the third quarter of 2019.
CHA produced net sales of approximately $75 million in 2018 and operates a 108,000-ton-per-year uncoated recycled paperboard mill in Wisconsin Rapids, Wisconsin, as well as two core converting facilities in Wisconsin Rapids and Richmond, Virginia, which combined employ approximately 175 associates.
“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,” says Rob Tiede, Sonoco president and chief executive officer. “Along with its attractive assets and customer mix, 100 percent 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 percent relative to the volume of products we put into the global marketplace by 2025.”
According to Sonoco, this acquisition will be modestly accretive to the company’s earnings in 2019 and there are no expected planned changes in operating leadership and customer relationships as a result of the transaction. When the transaction is completed, CHA’s financial results will be reported within Sonoco’s Paper/Industrial Converted Products segment.