FTC Grants Early Termination of Waiting Period for KapStone Paper and
Packaging Corporation
NORTHBROOK, Ill., May 6 /PRNewswire-FirstCall/ -- KapStone Paper and
Packaging Corporation (Nasdaq: KPPC) today reported that KapStone Paper and
Packaging Corporation ("KapStone") was notified on May 5, 2008 by the Federal
Trade Commission that early termination of the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 was granted with respect
to KapStone's pending acquisition of substantially all of the assets of
MeadWestvaco South Carolina, LLC and MeadWestvaco Corporation (collectively
"MeadWestvaco") used in the manufacture and distribution of unbleached
saturating kraft, unbleached coated kraft folding carton board and unbleached
kraft linerboard at MeadWestvaco's paper mill in Charleston, South Carolina, a
related lumber mill and five chip mills, including one on-site at the
Summerville lumber mill (collectively, the "Business"). The Company expects
to close the deal by the end of the third quarter of 2008, subject to
customary closing conditions including finalization of financing.
About the Company
On January 2, 2007, KapStone Paper and Packaging Corporation completed the
acquisition of substantially all of the assets and assumed certain
liabilities, of the Kraft Papers Business, or KPB, a division of IP. The
assets include an unbleached kraft paper manufacturing facility in Roanoke
Rapids, North Carolina and Ride Rite(R) Converting, an inflatable dunnage bag
manufacturer located in Fordyce, Arkansas. Prior to the acquisition of KPB,
KapStone, a special purpose acquisition corporation or "blank check company",
had no operations.
Headquartered in Northbrook, IL, KapStone Paper and Packaging Corporation
is a leading North American producer of kraft paper and converter of
inflatable dunnage bags. The business employs approximately 700 people.
Forward-Looking Statements
Certain matters discussed in this news release, including statements
regarding the proposed acquisition, the expected timetable for completing the
transaction, future financial and operating results, benefits and synergies of
the transaction, future opportunities for KapStone after the acquisition and
any other statements about management's future expectations, beliefs, goals,
plans, or prospects constitute "forward-looking statements" intended to
qualify for the safe harbor from liability established by the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking statements are
based on management's beliefs, assumptions and current expectations and are
made subject to certain risks and uncertainties, which could cause actual
results to differ materially from those presented in these forward-looking
statements. The potential risks and uncertainties include, among others, the
possibility that the transaction will not close or that the closing may be
delayed, the ability of KapStone to successfully integrate Charleston's
operations and employees, the ability to realize anticipated synergies and
cost savings, general economic conditions and industry specific conditions. In
addition, please refer to the documents that KapStone files with the
Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K. These filings
identify and address other important risk factors that could cause KapStone's
financial and operational results to differ materially from those contained in
the forward-looking statements set forth in this document. Accordingly,
readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Except to the extent
required by law, KapStone undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that arise after
the date hereof.
SOURCE KapStone Paper and Packaging Corporation
Andrea Tarbox, Vice President and CFO of KapStone Paper and Packaging
Corporation, +1-847-239-8812
