Rock-Tenn Acquires Canadian Firm

Rock-Tenn Co. has acquired Cartem Wilco Group Inc., a privately held Canadian manufacturer of folding cartons and specialty packaging. The cost of the acquisition is $65 million

Cartem Wilco Group's Montreal specialty plant is a manufacturer of folding cartons for the hair care product segment and also specializes in health care and pharmaceutical packaging. Cartem Wilco also manufactures folding cartons for food packaging and consumer products from two plants located in Montreal and Quebec City.

James Rubright, Rock-Tenn’s chairman and CEO, said, "We are very pleased to have the Cartem Wilco group join Rock-Tenn. We believe this acquisition will accelerate our expansion into the growing health and beauty and pharmaceutical packaging market that we have targeted for some time. Cartem Wilco's capabilities and experience in health and beauty care products and premier customer base will be great additions to Rock-Tenn's diverse folding carton business.

“The acquisition will also further our vertical integration through the opportunity to produce internally or arrange trade swaps for the 20,000 tons per year of recycled paperboard converted by Cartem Wilco, of which we currently supply about 4,000 tons."

Following the acquisition, Rock-Tenn's Folding Carton division will create a Health and Beauty Care business unit, which will be headed by Pierre Beaudoin of Cartem Wilco Group and will include plants in Quebec; Kimball, Tenn.; and Milwaukee, Wis. The Cartem Wilco Group's general folding carton operations will become a part of Rock-Tenn Company's Ling Industries, which is headed by Raymond Beaulieu, Vice President of Northeast Operations.