KeyStone Paper and Packaging rises on mill purchase
Shares of KapStone Paper and Packaging Corp. (Nasdaq:KPPC) are higher on news after the start of trading that the maker of kraft paper and converter of inflatable dunnage bags has signed an agreement with MeadWestvaco Corp. (NYSE:MWV) to purchase its kraft division $485 million. The sale includes a paper mill, lumber mill and four wood chip mills.
Synergies are expected to be at least $2.5 million per year, Northbrook, Ill.-based KapStone said. The deal is expected to close by the end of the third quarter of 2008.
At 3:51 p.m. ET, the stock was up $0.51, or 8%, to $7.01. For detailed price information and recent news stories about KapStone Paper and Packaging, click KPPC.
