US-based differentiated paper and packaging solutions provider WestRock has signed agreements to acquire all of the assets of Plymouth Packaging, a corrugated packaging company, for an undisclosed amount.
Under the terms of the deal, WestRock will acquire Plymouth’s fanfold corrugated facilities in Battle Creek, Michigan; Ft. Worth, Texas; and Mechanicsburg, Pennsylvania.
The deal, which is subject to customary closing conditions, also includes acquisition of all of the Plymouth-owned Box on Demand machines located in customers’ facilities.
Using fanfold corrugated, the Box on Demand systems are designed to produce custom, on-demand corrugated packaging to meet customer’s specifications.
The Box on Demand machines, which are manufactured by Panotec, are installed at customers’ sites as part of multi-year exclusive agreements for the fanfold corrugated supply.
Approximately 40% of the Box on Demand” systems sales are to e-commerce customers, with the remaining customers serving building products, furniture and other markets.
Plymouth currently supplies more than 100 customers with Box on Demand machines, manufactured by Panotec.
The agreement also allows WestRock to purchase Plymouth’s stake in Panotec and Plymouth’s exclusive right to distribute Panotec’s equipment in the US and Canada.
WestRock expects the acquisition to further integrate its containerboard system.
WestRock corrugated packaging business president Jeff Chalovich said that the acquisition will further develop its innovation platform and differentiation strategy.
“The addition of the ‘Box on Demand’ system will enhance our automated packaging systems business and WestRock’s differentiation in e-commerce and other custom applications where on-site box making is needed.
“The acquisition will improve our margin profile, our growth prospects in our corrugated packaging business and move us closer to our goal to be 80% integrated.”
Plymouth president Greg Magnell said: “The combination provides access to a much broader geographic footprint and significant additional resources that will help this business continue to grow and serve our customers.”
Image: WestRock will acquire Plymouth Packaging to further integrate its containerboard system. Photo: courtesy of adamr/FreeDigitalPhotos.net.