Packaging manufacturer WestRock has acquired paper and corrugated packaging producer KapStone, in a deal worth approximately $4.9 billion.
KapStone – which produces corrugated packaging for consumer goods products through its Kraftpak line, and for e-commerce delivery clients such as Graze – will join WestRock’s corrugated packaging division.
KapStone currently employs around 6,400 people and operates four paper mills, 22 production facilities and more than 60 distribution centres across North America.
WestRock agreed to acquire all of the outstanding shares in KapStone for $35 per share, and assumed approximately $1.36 billion in net debt to finance the acquisition.
The company claims that the acquisition will deliver approximately $200 million in cost savings by 2021, and will significantly expand its operations in the west of the US and broaden its portfolio of differentiated paper and packaging solutions with the addition of attractive paper grades and distribution capabilities.
Steve Voorhees, chief executive officer of WestRock said: “I am pleased that we have completed the acquisition of KapStone Paper and Packaging, and I welcome our new teammates to WestRock.
“The addition of KapStone enhances our differentiated portfolio of paper and packaging solutions and will enable us to serve our customers better across our system.
“We look forward to delivering on the opportunities that the addition of KapStone provides for our team, our customers and our stockholders.”
© FoodBev Media Ltd 2018