Displaying items by tag: kapstone

KapStone Paper and Packaging Corporation (NYSE: KS) – At approximately 8:45 p.m. EDT, Sunday, April 30, 2017, an incident occurred at our North Charleston, SC paper mill involving employees performing maintenance work in an operating area that was offline for repairs. The incident resulted in the fatality of one employee and injuries to a second employee. The second employee was transported to a local hospital and released.

Our primary concern is for the privacy and welfare of the families involved and for the safety and well-being of employees working on our site.

The incident was reported to South Carolina OSHA and is currently under investigation.

Further information will be provided, as appropriate, when it becomes available.             

About KapStone

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has four paper mills, 21 converting plants and 65 distribution centers. The business has approximately 6,300 employees.

KapStone Paper and Packaging Corporation (NYSE: KS) (the "Company" or "KapStone") have just announced it is making an investment in building a new state-of-the-art sheet plant in Ontario, California, as well as investing as a minority partner in a sheet feeder in Ontario, California.  The new sheet plant is expected to be manufacturing boxes by January 2017 and is intended to primarily supply the Company's Victory Packaging operations in Southern California as well as other KapStone customers.  This venture, as well as another minority investment in a sheet feeder announced today, are expected to increase KapStone's vertical integration by over 60,000 tons per year and will ramp up to that level over eighteen months.  Collectively, these investments are expected to be approximately $25 million and will be largely funded before fiscal year end 2016.

Roger Stone, Chairman and Chief Executive Officer of KapStone, said, "These investments are consistent with our strategy to increase the vertical integration of KapStone's mills, reducing exposure to non-integrated end markets, and are in addition to the 20,000 to 25,000 tons per year vertical integration from the Central Florida Box acquisition.  The Ontario, California, sheet plant will further extend our geographic reach to better service KapStone's customers while internalizing the production of some of our Victory Packaging corrugated box demand."

About the Company
Headquartered in Northbrook, Illinois, the Company is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has 4 paper mills, 22 wholly owned corrugated converting facilities including Ontario, California, 65 distribution centers, and approximately 6,300 employees.

KapStone Paper and Packaging Corporation (NYSE: KS) has just announced that it completed the acquisition of Central Florida Box (CFB) Corporation located in Lake Mary, Florida.

CFB provides design, graphics, manufacturing, assembly, fulfillment, warehousing and distribution services to over 400 customers ranging from small, family-owned companies to large, national corporations.

Chairman and Chief Executive Officer, Roger W. Stone, stated, "The acquisition of Central Florida Box enhances KapStone's footprint in the strategic Southeast market. In addition, this acquisition further strengthens our goal of increasing integration, providing additional internal opportunities for our Mill Division and Victory Packaging. We believe this business acquisition is a wonderful fit to our overall business strategy."

Jeff Ramsey, President of Central Florida Box Corporation, stated, "CFB is excited to become a part of the KapStone family. With their Think Big, Act Small philosophy, we believe their goals and values align perfectly with CFB. We will look to expand our footprint in the Florida market and leverage our relationships with existing national customers to grow national accounts for KapStone."

About KapStone
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has four paper mills, 21 converting plants and 65 distribution centers. The business has approximately 6,300 employees.

KapStone Paper and Packaging Corporation (NYSE: KS) announces the recent release of its fourth annual sustainability report which shows ongoing progress towards meeting its 2020 sustainability goals. The report details accomplishments along with areas for improvement necessary to meet those goals.

The baseline for this report is company performance as reported in 2010 and conforms to the Global Reporting Initiative's (GRI) G4 rigid and voluntary standards.

KapStone Paper and Packaging Corporation President, Matt Kaplan, states: "We have set aggressive environmental, health and safety goals that are of importance to our employees, our customers and the communities where we operate. These goals are key to our guiding principles. We think big and act small. We take care of our partners. We do business the right way. With our commitment to these guiding principles, we are committed to meeting our 2020 sustainability goals."

The 2015 Sustainability Report details six areas of 2020 Sustainability goals, our progress toward meeting those goals, and a Management Plan for further progress. In the environmental impact area, we made good progress in reducing energy use, greenhouse gas and criteria air emissions. We are working hard to minimize our environmental footprint in the areas where we operate. We believe we are on track to meet all of our performance targets. Our People and Communities area highlights "Safety First, Last and Always" for employees as a core value at KapStone as well as community involvement and open communications. The report concludes with an overview of KapStone Paper and Packaging Corporation.

KapStone's 2015 Sustainability Report provides a detailed update reporting on progress and the continued commitment to achieving its 2020 Sustainability Goals.

For additional information visit sustainability.kapstonepaper.com

About KapStone
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has four paper mills, 21 converting plants and 65 distribution centers. The business has approximately 6,300 employees

KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone" or the "company") has received and agreed to an offer from the Association of Western Pulp and Paper Workers Union Local 153 to unconditionally return to work from their strike that commenced on August 27.

The company will initiate an orderly transition process bringing back Mill employees beginning today and will gradually ramp up to full employment and production over the next week. Longview Box employees have already been scheduled in as of Monday.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has four paper mills, 21 converting plants and 65 distribution centers.  The business has approximately 6,200 employees.

For additional company information visit: www.kapstonepaper.com

SOURCE KapStone Paper and Packaging Corporation

Andrea K. Tarbox, Vice President and Chief Financial Officer, 847.239.8812

KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone") is announcing today that its Longview, Wash. mill has restarted its #11 paper machine in accordance with a contingency plan to operate the mill in the event of a strike.

This is the second of the mill's five paper machines to be brought back online following a work stoppage initiated on Aug. 27, 2015, by the AWPPW union, Local 153. The first machine to resume operations was paper machine #10, the mill's largest machine. #10 produces containerboard primarily for KapStone's corrugated box plants in the Pacific Northwest region. It was restarted on Monday, Aug. 31 after a maintenance outage that followed the work stoppage.

Paper machine #11, KapStone's most flexible machine, produces a broad range of kraft paper products for external customers both in the U.S. and abroad. A number of the company's specialty products are produced on this machine, including its unique line of extensible kraft papers.

The mill began shipping products to customers according to its contingency plan shortly after paper machine #10 was brought back online. It continues to ramp up production, now with both its #10 and #11 machines.

President of the Kraft Paper Division, Randy Nebel, said that employee teams from across the country are working together to ensure a smooth return to full production according to the company's contingency plan. "We continue to live up to our commitment to provide customers with a broad range of products and services, despite the strike," he said.  

KapStone operates four paper mills throughout the U.S. with a total of eleven paper machines. It is temporarily diverting some of the product it normally produces in Longview to its sister mills.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has four paper mills, 21 converting plants and 65 distribution centers.  The business has approximately 6,200 employees.

For additional company information visit: www.kapstonepaper.com

KapStone Paper and Packaging Corporation has announced that its Board of Directors has approved a regular quarterly dividend of $0.10 per share payable on October 13, 2015 to shareholders of record as of September 30, 2015.  Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to the determination of the Company's Board of Directors.

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company has four paper mills, 21 converting plants and 65 distribution centers.   The business has approximately 6,200 employees.

SOURCE KapStone Paper and Packaging Corporation

KapStone Paper and Packaging Corporation (NYSE: KS) has announced that it has completed the purchase of Victory Packaging/Golden State Container ("Victory").  Victory, headquartered in Houston, TX, is a large, national distributor of all types of packaging specializing in providing unique solutions.  Victory employs about 1,500 people.

"Today we are welcoming Victory's team as the newest members of KapStone," stated Roger W. Stone, Chairman and Chief Executive Officer.  "The Victory team has grown both revenues and adjusted EBITDA at an impressive 14 percent compounded annual growth over the past four years. Excluding significant new customer wins, the compounded annual growth rate for revenue and adjusted EBITDA has been consistently between five to seven percent. Victory will enhance KapStone's growth, profitability, cash flows, and returns to our shareholders."

Funding for the acquisition came from borrowings under the $1.915 billion amended and restated senior secured credit facility led by Bank of America, Barclays Bank, and Well Fargo Bank.  The amended facility now consists of Term Loan A-1 of $940 million maturing over five years, Term Loan A-2 of $475 million maturing over seven years with one percent amortization in each of the first six years with the remaining principal due at the end of year seven, and a $500 million revolving credit facility.   The initial blended interest rate will be 1.9 percent as determined from the LIBOR-based pricing grid, and the rate is subject to change over the life of the loans as LIBOR rates and KapStone's debt to EBITDA ratio change.

About the Company  

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is a leading North American producer of containerboard, unbleached kraft paper and corrugated products, and a provider of packaging and logistics solutions.  The Company operates four paper mills, 22 converting plants, and more than 65 warehouses and distribution centers located in North America. The business employs approximately 6,000 people. 

SOURCE KapStone Paper and Packaging Corporation

Andrea K. Tarbox, Vice President and Chief Financial Officer, 847.239.8812

KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone")  and Victory Packaging/Golden State Container ("Victory") jointly announced today that they have signed an agreement for KapStone to acquire the assets of Victory Packaging in a cash-free, debt-free transaction for $615 million in cash, subject to post-closing adjustments.  In addition, two contingent earnouts totaling $45 million could be payable two and a half to four years after the close and are based on the continued strong growth of the business.  Closing of the acquisition is subject to a number of customary conditions, including regulatory review.

The structure of the transaction will enable KapStone to realize a tax benefit that has an estimated net present value of approximately $100 million.  Taking this benefit into account, the net purchase is about $515 million. 

Founded in 1976, Victory Packaging, headquartered in Houston, TX, is a large, national distributor of all types of packaging specializing in providing unique solutions for its clients.   Through its 65 distribution centers located in the United States, Mexico and Canada, Victory services customers with complex needs that often are not attractive to other integrated box manufacturers.  Victory's net sales grew to $953 million and adjusted EBITDA reached $55 million for the year ended December 31, 2014, and the CAGR for both net sales and adjusted EBITDA was in excess of 14% for the past four years. 

Chairman and Chief Executive Officer of KapStone, Roger W. Stone, stated, "Acquiring Victory will provide KapStone with growth based on Victory's impressive, profitable track record.  The acquisition will allow KapStone to de-risk operations by providing a higher level of integration.  Victory is a unique strategic fit that will simultaneously increases utilization of our converting assets and mills. Victory currently buys approximately 370,000 tons of corrugated products annually of which KapStone expects to supply an incremental 115,000 tons.  Victory will still rely heavily on their current supplier base to fill the remainder.  Conservatively estimated, these synergies are expected to reach $30 million of EBITDA in 24 months.  The deal is accretive to our bottom-line from Day 1.  Our balance sheet, which was strong going into this transaction, remains strong after the acquisition.  The combined company is expected to deliver substantial free cash flow in the first year allowing KapStone to quickly de-lever."

Matt Kaplan, President and Chief Operating Officer of KapStone, added, "As a previous board member of Victory, I was able to fully gain an appreciation for their abilities to deliver superior services, drive excellent operating performance, and deliver results to the bottom line.  Therefore, I am delighted to have the Victory team join KapStone and am looking forward to the significant benefits that the combined companies will achieve."

Benjamin Samuels, Chief Executive Officer of Victory, commented, "Victory recognizes that making our next leap will take more resources and experience.  We are excited about the match of KapStone's people and business model to where Victory is headed.  Almost forty years ago, Vic Samuels started with a dream of building a new packaging experience focused on the customer.  Today, we are taking the next step in the fulfillment of that dream by partnering not only with some of the best people in the industry, but with good friends."  

Robert Egan, Chief Operations Officer/President of Victory Packaging, further commented, "We are excited about the opportunities the business combination brings to our Victory family, our customers and the packaging community. The integrated business models of KapStone and Victory Packaging allow both organizations to meet their expansion goals, add immediate value and provide an avenue for future growth. We are thrilled to join the KapStone family and expand our North American presence and capabilities."

Mr. Stone concluded, "Strategically, the acquisition of Victory is a great next step for KapStone.  The acquisition transforms KapStone into a much stronger company providing additional momentum for KapStone to continue its record of excellence in increasing value to our shareholders."  

KapStone has committed financing from Bank of America, Barclays Bank, and Wells Fargo Bank.

The transaction is expected to close in the second quarter of 2015.

About KapStone

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company is the parent company of KapStone Kraft Paper Corporation and KapStone Container Corporation which includes four paper mills and 22 converting plants, respectively, across the U.S. The business employs approximately 4,600 people.

About Victory

Based in Houston, TX, Victory Packaging has more than 65 warehouses and distribution facilities in the United States, Canada and Mexico, and operates in California under the company name of Golden State Container. Victory Packaging is a leading national distributor company specialized in solving packaging complexities and finding total cost optimization associated with packaging for its clients. Victory Packaging provides just-in-time delivery and inventory management to a diverse customer base. Its national network includes more than 6 million square feet of warehouse space and approximately 400 delivery vehicles. Victory Packaging is a privately-held limited partnership and employs approximately 1,500 people. For more information visit http://www.victorypackaging.com.

KapStone Paper and Packaging Corporation (NYSE: KS) ("KapStone" or "the Company")  As part of KapStone's periodic review with our community constituents, KapStone shared a capital investment plan for the North Carolina paper mill with the Economic Development Commission.   The multi-year investment plan, which totaled approximately $115 million, included the recently completed $29 million upgrade to paper machine number three as well as a range of anticipated capital projects that will maintain the mill's cost competitiveness and efficiencies over multiple years by modernizing the three existing paper machines.  

About the Company

Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation is the fifth largest producer of containerboard and corrugated packaging products and is the largest kraft paper producer in the United States. The Company is the parent company of KapStone Kraft Paper Corporation and KapStone Container Corporation which includes four paper mills and 22 converting plants, respectively, across the US. The business employs approximately 4,600 people.

SOURCE KapStone Paper and Packaging Corporation

Andrea K. Tarbox, Vice President and Chief Financial Officer, 847.239.8812