Rock-Tenn completes deal for Mid South Packaging
Mid South Packaging, former owned by Coridel Capital Partners, is a corrugated packaging manufacturer with operations in Cullman, Alabama and Mississippi.
Rock-Tenn said the acquisition would expand their customer base and market reach.
The firm is comprised of three main segments including the ComboPAC Food Group, which supplies bulk boxes to the poultry and meat industries.
Increase integration level
James A. Rubright, Rock-Tenn chairman and chief executive officer, said: "The acquisition of Mid South, a company well-known for its profitable business model and efficient, well-run operations, is in keeping with our announced strategy to seek acquisitions that increase our integration level.
"Adding Mid South's unique customers to RockTenn's already diversified customer base further strengthens our market reach."
Last year, Rock-Tenn completed the deal for containerboard and corrugated packaging supplier Smurfit-Stone for US$3.5bn.
Rock-Tenn has around 26,000 employees and operates in the US, Canada, Mexico, Chile, Argentina and China.
Robust company
"It has been a privilege to partner with the Mid South management team as they built a robust company, making significant operational improvements, growing revenues and delivering record earnings year after year during our investment period," said Tyler Kwon, chairman and chief executive officer of Coridel.
"This transaction demonstrates the significant value that has been created.
"I am confident that under the leadership of the Rock-Tenn organization, Mid South will continue its tradition of excellence and innovation."
The move follows International Paper’s $4.5bn deal for Temple-Inland completed in February and the subsequent 950,000 ton divesture agreement with the US Department of Justice (DOJ) concluded in June with the sale of three sites.
