American global packaging manufacturer MeadWestvaco has announced a definitive agreement to sell its kraft paper mill in North Charleston, South Carolina., and its related assets to KapStone Paper and Packaging Corporation for $485 million in cash, subject to certain closing adjustments.

KapStone has committed financing for the entire purchase price. Completion of the transaction is expected by the end of the third quarter 2008, and the company plans to use a substantial portion of after-tax proceeds to pay down debt. The company expects to report a modest gain upon completion of the sale.

“MWV’s growth strategy is focused on providing total packaging solutions for customers in growing global consumer products markets,” said John A. Luke, Jr., chairman and chief executive officer. “The North Charleston mill is an industry-leading facility and is well positioned to succeed in its markets, yet it is no longer an optimal fit with our long-term consumer packaging strategy.”