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NORTHBROOK, Ill. (AP) -- KapStone Paper and Packaging Corp. said Thursday it has agreed to buy U.S. Corrugated Inc. for $330 million cash.

The deal is expected to close late next month.

U.S. Corrugated operates a recycled containerboard paper mill in Cowpens, S.C., and 20 converting facilities, six of which it plans to dispose of before the closing.

KapStone Roger Stone said the company wanted to increase its exposure to the containerboard segment. He said the company anticipates eliminating about $8 million of expenses due to redundant operations as a result of the deal.

KapStone shares fell 65 cents, or 4.8 percent, to close at $12.93 before the deal was announced.

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