Kapstone Paper & Packaging to buy MWV’s SC paper mill

-- Converting Magazine, 4/15/2008

MeadWestvaco Corp. (www.meadwestvaco.com) agrees April 7 to sell its kraft-paper mill in North Charleston, SC, and related assets to KapStone Paper and Packaging Corp. (www.kapstonepaper.com) for $485 million in cash. The deal is expected to close by the end of the third quarter 2008, and MWV says it will use a substantial portion of after-tax proceeds to pay down debt.

Says John A. Luke, Jr., MWV chairman and chief executive officer, “The North Charleston mill is an industry-leading facility and is well positioned to succeed in its markets, yet it is no longer an optimal fit with our long-term consumer packaging strategy.”

In 2007, the North Charleston mill produced 833,000 tons of saturating kraft, linerboard, and kraft folding-carton board. The approximately 1,100 employees will transition to KapStone immediately following the completion of the sale.