Sonoco secures $110m deal to buy Corenso Holdings America
Packaging company Sonoco has signed an agreement to acquire recycled paperboard manufacturer Corenso Holdings America for approximately $110 million.
Corenso Holdings America recorded net sales of approximately $75 million in 2018 and operates a recycled paperboard mill in Wisconsin Rapids, Wisconsin, as well as two core converting facilities in Wisconsin Rapids and Richmond, Virginia, which combined employ approximately 175 people.
The acquisition is due to close in the third quarter of 2019 and Sonoco said it expects no planned changes in operating leadership and customer relationships.
Rob Tiede, Sonoco president and chief executive officer, said: “The acquisition of Corenso Holdings America (CHA) 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.”
He added: “Along with its attractive assets and customer mix, 100% of Corenso Holdings America products are made from recycled raw materials, which further enhances Sonoco’s sustainability commitment to increase by weight the amount we recycle or cause to be recycled up to 85% relative to the volume of products we put into the global marketplace by 2025”.
The deal comes after VPK Packaging Group closed the acquisition of Corenso’s European and Chinese operations from NPAC International earlier this month. The acquired businesses of Corenso will be merged with VPK’s Corex division.
Last year, Sonoco agreed a $150 million deal to acquire US-based Highland Packaging Solutions, a producer of a range of thermoformed plastic packaging used for dairy products and fresh produce.