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RIVERWOOD INTERNATIONAL ACQUIRES MACON KRAFT ASSETS

 RIVERWOOD INTERNATIONAL ACQUIRES MACON KRAFT ASSETS
 ATLANTA, July 1 /PRNewswire/ -- Riverwood International


Corporation (NYSE: RVW) announced today that it has completed the purchase of substantially all the assets of Macon Kraft, Inc., of Macon, Ga., from Pratt Industries (USA), utilizing financing raised through its initial public offering of 19 percent of its common stock for $172 million and public debt offering of $400 million in bonds.
 The offerings were designed to finance growth and expansion of Riverwood International's paperboard production capabilities through the Macon Kraft mill acquisition. The purchase price of the Macon mill was approximately $220 million, of which $169 million was debt assumed from Macon Kraft by Riverwood International.
 The Macon mill currently produces linerboard for corrugated box applications. To meet the growing demand of global beverage and food market customers for paperboard packaging, Riverwood International will convert the Macon mill's number one machine to produce its proprietary coated boards, known as Aqua-Kote(R) and Pearl-Kote(R). The conversion, involving one of the two paper machines at the mill, will begin immediately and is expected to be completed in 1994. The company will continue linerboard production on the second machine but intends to convert it to coated board in the future.
 "This acquisition represents our single largest capital investment in the history of the company and is key to our continued expansion. It allows us to continue our growth as a leading supplier of paperboard packaging to the beverage and food industry," said Thomas H. Johnson, Riverwood International's president and chief executive officer.
 Macon Kraft employs more than 500 people with current annual linerboard production of approximately 525,000 tons. Robert C. Hart, Riverwood International senior vice president-paperboard, assumes management responsibility for the papermill, which will do business as Riverwood International Georgia, Inc.
 "We welcome the Macon employees to the Riverwood International team and look forward to continuing to meet the packaging needs of our combined customer base with high quality products," Hart said. "We also look forward to being an active part of the Macon community."
 The recently concluded public offerings were managed by J. P. Morgan Securities Inc., The First Boston Corporation and Salomon Brothers Inc. Manville Corporation (NYSE: MVL) retains 81 percent ownership of Riverwood International.
 Riverwood International Corporation is a global packaging systems and paper products company. At the end of 1991, the company employed more than 8,000 people worldwide and had assets of approximately $1.4 billion with annual sales of approximately $1 billion. The company is headquartered in Atlanta, Ga. and has seven major business operations spanning North America, Europe, Asia-Pacific, Central and South America.
 -0- 7/1/92
 NOTICE TO EDITORS FROM RIVERWOOD INTERNATIONAL CORPORATION: Riverwood International is the only legally acceptable short version use of our new name, other than the full name, Riverwood International Corporation. Please do not abbreviate as "Riverwood". Thank you.
 /CONTACT: Charles Lemons (Financial), 303-978-4694; Don Ferguson, 303-978-3255, both of Manville; or Jonna Manes of Riverwood International, 404-916-7914/
 (RVW MVL) CO: Riverwood International Corporation; Manville Corporation;
 Macon Kraft Inc. ST: Georgia, Colorado IN: PAP SU: TNM


BB -- DV011 -- 5827 07/01/92 15:15 EDT
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Publication:PR Newswire
Date:Jul 1, 1992
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