NEW YORK (AP) -- Shares of Kapstone Paper and Packaging Corp. surged on Monday after the company said it will pay $485 million cash for six mills in South Carolina owned by packing company MeadWestvaco Corp.
Kapstone shares climbed 66 cents, or 10.2 percent, to $7.16 by Monday afternoon.
The purchase gives Kapstone four wood chip mills, a paper mill and a lumber mill which altogether employ about 1,100 people.
Kapstone, based in Northbrook, Ill., said in a statement that the sale would be completed by the end of the third quarter following regulatory approval.
Soleil Securities Group analyst Anna E. Torma said the deal was a ''strategic positive'' for MeadWestvaco, adding that it simplified its operations.
Shares of MeadWestvaco, based in Glen Allen, Va., lost 49 cents to $28.49.