Gulf States Paper to buy Fold-Pak

Gulf States Paper Corporation has signed a letter of intent to acquire Fold-Pak Coporation.

Fold-Pak is a privately held packaging company headquartered in Newark.

Under the proposed acquistion, Gulf States would purchase Fold-Pak for an undisclosed amount. Current Fold-Pak operations would then join Gulf States as part of its Paperboard Packaging Division.

"We are pleased to enter into this agreement with Gulf States," said Karl DeMay of Newark, president and CEO of Fold-Pak. "Gulf States is a strong company, with good leadership, and I am confident they will enhance the growth and productivity of the Fold-Pak operations."

"Fold-Pak is a well-known, well-respected company in the paperboard packaging industry and we are excited about the added capacity and product lines they bring to our operations," said Ed Woods, Gulf States' president and CEO. "Fold-Pak specializes in some segments of the industry that are important markets for us. I believe they will be a good fit with our existing organization."

Gulf States' Paperboard Packaging Division produces folding cartons for a variety of food and consumer goods, as well as food-service and carryout packaging for fast foods.

"Fold-Pak specializes in ice cream packaging, which is a growing market for us, and is the leading worldwide manufacturer of paperfood pails for carryout use," said Lance Reppert, Exec. Vice President of the Paperboard Packaging Division.

Finalizing the purchase is subject to negotiation of specific contracts. The purchase is expected to be completed early in 1998.

Albama-based Gulf States is privately held and produces forest products, pulp, paperboard and packaging. The company's packaging plants are located in Claremont and Conover, North Carolina; Joplin, Missouri; Maplesville, Alabama; Nicholasville, Kentucky; and Waco, Texas.

Fold-Pak has a folding carton plant in Newark and paperboard pail manufacturing plants in Columbus, Georgia; Fresno, California; and Hazleton, Pennsylvania.

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