Fort James Sells Packaging Business

Fort James Corp. (Deerfield, IL), the maker of Quilted Northern bathroom tissue, Brawny paper towels and Dixie cups has agreed to sell its packaging business for $830 million to ACX Technologies Inc. (Golden, CO).

Fort James is the third largest producer of folding cartons in the United States. It decided to sell the packaging operations in order to focus on tissue, paper towels and other consumer products for which it is best known, according to chairman and CEO Miles Marsh.

The sale, which is expected to be completed by mid-1999, will reportedly make ACX the largest folding carton producer in the United States. The 13 Fort James facilities to be sold make folding cartons and healthcare and microwave packaging for packaged good companies. The facilities have 2,600 employees and last year reported sales of $590 million.

The sale involves 12 folding carton converting plants, along with a paperboard mill in Kalamazoo, MI. The plants are located in Kalamazoo; Charlotte, NC; Garden Grove, CA; Gordonsville, TN; Kendalville, IN; Menasha and Wausau, WI; Newnan, GA; North Portland and Portland, OR; Perrysburg, OH; and Mississauga, Ontario.

Not included in the transaction are Fort James' two bleached paperboard machines at the company's Pennington, AL, towel and tissue mill.