KapStone Completes Acquisition of U.S. Corrugated
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KapStone Paper and Packaging Corp., Northbrook, Ill., USA, this week completed the acquisition of U.S. Corrugated, Inc. (USC). Under the terms of the sale, KapStone acquired USC, including a 240,000 ton recycled containerboard paper mill in Cowpens, S.C., and 14 converting facilities in the eastern and mid-western U.S.
"Today we are welcoming USC's team as the newest members of KapStone," said Roger W. Stone, chairman and CEO. "We look forward to building on their momentum. The acquisition of USC now transforms KapStone into a much more profitable and stronger company."
Funding for the acquisition came from cash on hand and borrowing under a new $525 million senior secured credit facility consisting of a $375 million term loan maturing over five years and a $150 million revolving credit facility. At closing, KapStone's previously existing $101 million term loan was repaid. The company now has a $375 million, 5-yr term loan at an initial interest rate of 2.25%. The revolver was unused and is available for working capital requirements.
KapStone Paper and Packaging is a producer of unbleached kraft paper products, linerboard, and shipping containers. The company is the parent company of KapStone Kraft Paper Corp., which includes paper mills in Roanoke Rapids, N.C., North Charleston, S.C., and Cowpens, S.C., 14 converting locations in the east and Midwest, and a lumber mill in Summerville, S.C. It employs some 2,700 people.
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