Rock-Tenn to buy Southern Container for $851 million

Jan 11, 2008. /Lesprom Network/. Rock-Tenn Company announced that it has agreed to acquire the stock of Southern Container Corp., a privately-held containerboard manufacturing and corrugated packaging business, for $851 million in cash. Southern Container operates the Solvay mill, a 720,000 ton per year recycled containerboard plant located near Syracuse, NY, as well as eight integrated corrugated box plants, two sheet plants, and four high impact graphics facilities. According to Rock-Tenn, Southern Container will have approximately $142 million in debt outstanding immediately after the acquisition. Rock-Tenn expects to close the deal in late March 2008. Rock-Tenn said it plans to finance the acquisition with proceeds from $1.4 billion in new credit facilities and the sale of unsecured senior notes. The $1.4 billion will provide Rock-Tenn with funding to complete the acquisition, refinance its existing credit facilities and provide in excess of $200 million of undrawn capacity. Rock-Tenn is a leading manufacturer of packaging products, bleached and 100% recycled paperboard.