Chesapeake Corporation Completes Sale of 27% Interest in Color-Box Joint Venture
Press release from the issuing company
RICHMOND, Va.--July 2, 2001--Georgia-Pacific Corp. and Chesapeake Corporation have completed Georgia-Pacific's purchase of an additional 27 percent interest in Color-Box, LLC, from Chesapeake for $35 million. In early 2002, Chesapeake has the option to sell to G-P, and G-P has the option to buy from Chesapeake, Chesapeake's remaining 19 percent interest in Color-Box, LLC, for $25 million.
Color-Box, LLC, a joint venture between G-P and Chesapeake, designs and manufactures litho-laminated corrugated graphic packaging. Color-Box includes packaging facilities at Madera (Coralure) and Visalia, Calif.; Richmond, Ind.; Dubuque and Monticello, Iowa; and Pelahatchie, Miss. G-P will own 81 percent of the joint venture after the transaction.
Chesapeake Chairman, President and Chief Executive Officer Thomas H. Johnson said, "We are pleased this transaction is completed. It is one of a series of planned divestitures that we announced earlier this year. We completed the sale of our corrugated containers business in May and expect the sale of our U.S. Display business will be completed in July. These steps accelerate Chesapeake's repositioning as a focused specialty packaging company and provide greater visibility to our inherent value.''
Headquartered at Atlanta, Georgia-Pacific is one of the world's leading manufacturers and distributors of tissue, pulp, paper, packaging, building products and related chemicals. With annual sales of approximately $27 billion, the company employs more than 85,000 people at 600 locations in North America and Europe.
Chesapeake Corporation, headquartered in Richmond, Va., is a global leader in specialty packaging. Chesapeake is a leading European folding carton, leaflet and label supplier and a leader in plastics packaging for niche markets. Chesapeake has over 50 locations in North America, Europe, Africa and Asia. Chesapeake's website is www.cskcorp.com.
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