COMBINED LOCKS, Wisconsin (From news reports) -- A Fox Valley paper mill has been sold.

McKinley Paper Company, a U.S. subsidiary of Mexico-based Bio PAPPEL, announced the purchase of Midwest Paper Group from investment fund IOP. Terms of the deal were not announced.

Midwest Paper Group makes packaging-grade paper at its mill in Combined Locks. The mill has a capacity to produce 500,000 tons per year.

"The acquisition of Midwest Paper Group is consistent with our business strategy to continue building a powerful integrated paper and packaging company, convinced that North America is the best region to invest and create shared value over the long term," Bio-PAPPEL board chairman Miguel Rincón said in a news release. "We enrich our culture and competitiveness by warmly welcoming the people of Midwest Paper operations into the Bio PAPPEL- McKinley family."

Midwest Paper is the former Appleton Coated mill that made printing and writing-grade paper until it closed in 2017. The next year, it was converted to be able to produce packaging-grade paper.

State tax credits covered $1.8 million of the $30 million conversion cost.

Below is the press release:

McKinley Paper Company, the U.S. wholly-owned subsidiary of Bio PAPPEL, continues to grow in the U.S. and today announces the acquisition of 100% of Midwest Paper Group ("Midwest") from the investment fund IOP.

The acquisition of Midwest Paper Group, a large independent containerboard producer located in Wisconsin with a production capacity of 500 thousand tons annually, fits well with Bio PAPPEL- McKinley and substantially increases its current U.S. containerboard production. This allows the company to have a nationwide coverage to support McKinley's plans of continuous growth in its packaging division as well as to reliably supply its current customer base throughout the U.S.

With the acquisition of Midwest Paper Group, as well as the currently under construction and planned super plants of corrugated boxes, Bio PAPPEL will reach combined annual revenues in excess of $3 billion dollars, keeping a low debt level and financial investment grade rating.

Miguel Rincón, Chairman of the Board of Bio PAPPEL stated... "The acquisition of Midwest Paper Group is consistent with our business strategy to continue building a powerful integrated paper and packaging company, convinced that North America (Mexico - United States - Canada) is the best region to invest and create shared value over the long term. We enrich our culture and competitiveness by warmly welcoming the people of Midwest Paper operations into the Bio PAPPEL- McKinley family."