Smurfit-Stone Selling Consumer Packaging Segment

Smurfit-Stone Container Corp. has entered into a definitive agreement to sell all of the assets of its consumer packaging segment to a company formed by Texas Pacific Group for about $1.04 billion in cash.

Both parties expect the transaction to be completed by the end of the second quarter of this year.

The facilities being sold include four coated recycled boxboard operations; 39 consumer packaging converting operation in the U.S., including folding carton, multiwall and specialty bag, flexible packaging, label, contract packaging and lamination businesses; and one consumer packaging converting plant in Brampton, Ontario. The boxboard plants are located in Santa Clara, Calif.; Wabash, Ind.; Middletown, Ohio; and Philadelphia.

The sale follows Smurfit-Stone’s plan to reduce its debt and improve its financial flexibility, which was announced last November.

Smurfit-Stone also announced that John Riconosciuto resigned as the company’s COO to become the chief executive officer of the newly formed consumer packaging business for Texas Pacific Group.

Smurfit-Stone also announced that it has named Steven Klinger as president and chief operating officer. Kliner previously was Georgia-Pacific Corp.’s executive vice president, packaging, responsible for the containerboard, packaging, pulp and kraft business units.