Packaging company MeadWestvaco (MWV) has entered into an agreement with International Paper to buy its Carolina coated bristols brand for an undisclosed amount.
International Paper decided to sell the brand as it wanted to convert its Riegelwood mill to a 100% fluff and softwood pulp production facility.
The company said in a statement that it plans on investing $135m to expand the fluff pulp production at the mill. This investment will increase its production capacity by 400,000 tonnes. Once the conversion is completed, the company will be able to produce up to 1.4 million tonnes fluff every year.
Senior vice president, North America Papers and Pulp and Consumer Packaging Mike Amick said: "We recognize that Carolina is a leading brand valued by our merchants, printers, graphic designers and other customers.
"MWV has a long history producing coated bristols for the commercial print market and we view them as a strategic fit to acquire the Carolina brand."
With operations in North America, Europe, Latin America, Russia, Asia and North Africa, International Paper specialises in producing industrial and consumer packaging and uncoated papers.
Speaking about the sale of the brand, Amick added: "The sale of Carolina captures the brand's value, and positions the remaining coated paperboard products to support our customers' strategic growth in the food service and packaging markets.
"The company's commercial print portfolio, which includes the Hammermill, Accent Opaque, Williamsburg Offset and the Springhill brands, will continue to be a strategic part of the company and a valued part of merchant product portfolios."
