Sonoco, Hartville, South Carolina, has completed the acquisition of Corenso Holdings America Inc. (CHA) from a company owned by investment funds advised by Madison Dearborn Partners LLC and management for $110 million in cash. The company initially announced plans to acquire CHA in May.
CHA is a U.S. manufacturer of uncoated recycled paperboard (URB) and high-performance cores used in the paper, packaging films, tape and specialty industries, according to a news release from Sonoco announcing the acquisition. CHA produced net sales of approximately $75 million in 2018 and operates a 108,000-ton-per-year URB mill in Wisconsin Rapids, Wisconsin, as well as two core converting facilities in Wisconsin Rapids and Richmond, Virginia, which combined employ approximately 175 associates.
“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,” says Rob Tiede, president and CEO of Sonoco.
The acquisition of Corenso Holdings America is expected to be modestly accretive to Sonoco’s earnings in 2019 and there are no expected planned changes in operating leadership and customer relationships, the company reports in a news release. Sonoco funded the transaction using available cash and short-term borrowings. CHA’s financial results will be reported within Sonoco’s Paper/Industrial Converted Products segment.