Corenso is a manufacturer of uncoated recycled paperboard (URB) and high-performance cores used in the paper, packaging films, tape, and speciality industries
Image: Sonoco has acquired Corenso Holdings America. Photo: courtesy of Adam Radosavljevic from Pixabay.
US-based packaging firm Sonoco has completed the acquisition of Corenso Holdings America (CHA) for $110m (£91.3m) in cash.
Corenso, a recycled paperboard manufacturer, was acquired from a company owned by investment funds advised by Madison Dearborn Partners.
CHA is a major US producer of uncoated recycled paperboard (URB) and high-performance cores used in the paper, packaging films, tape, and speciality industries.
Corenso produces uncoated recycled paperboard
CHA has a 108,000-ton per year uncoated recycled paperboard mill in Wisconsin Rapids, in addition to two core converting facilities in Wisconsin Rapids and Richmond. Its facilities employ around 175 associates. The company has generated net sales of around $75m in 2018.
Sonoco president and chief executive officer Rob Tiede said: “We are extremely pleased to welcome Corenso Holdings America associates to Sonoco. 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.”
The packaging firm said that the acquisition of Corenso is expected to be modestly accretive to its earnings in 2019 and there are no expected planned changes in operating leadership and customer relationship.
Sonoco has used the available cash and short-term borrowings to complete the deal and it will report financial results within its paper/industrial converted products segment.
In May this year, Cascades Sonoco, a joint venture of Cascades and Sonoco Products Company, opened an expanded facility in Birmingham, Alabama, US.
Established in 1899, Sonoco is involved in offering different consumer packaging, industrial products, protective packaging, and displays and packaging supply chain services.
With annualised net sales of around $5.4bn (£4.4bn), the company employs 23,000 people in around 300 operations in 36 countries.
Based in Chicago, Madison Dearborn is a major US private equity investment firm that invests across a broad spectrum of industries such as basic industries, business and government software and services, financial and transaction services; health care, and telecom, media and technology services.