U.S. consumer packaging to industrial products company Sonoco Products Co. is buying recycled paperboard manufacturer Corenso Holdings America for circa $110 million in cash.

Sonoco is acquiring Corenso from a company owned by investment funds advised by Madison Dearborn Partners, and as a result of the deal, Sonoco will acquire Corenso’s two core converting facilities in Wisconsin and Virginia.

Sonoco said that the acquisition will increase its earnings in 2019 and Corenso's raw materials would allow it to boost the weight of its recycling output by up to 85.0 percent.

The deal remains subject to the usual regulatory approvals and is slated to close in the third quarter of 2019. On closure, there will be no changes in terms of leadership and customer relationships.