WestRock has purchased Australian paperboard-packaging manufacturer Hannapack for A$75m ($59m) to expand its consumer packaging portfolio.
Hannapack, which was established by Charles Hanna in 1967, provides folding cartons to a range of markets including beverage, food, confectionary and healthcare.
The company transforms about 30,000 tons of paperboard into folding cartons and supplies to its customers including for beverage packaging clients of West Rock.
Significant synergies are anticipated to be generated with WestRock’s existing business in the region, including integration of the company’s additional paperboard into the Hannapak system.
WestRock CEO Steve Voorhees said: “We have a strong relationship with the company and the Hanna family based on an 18-year partnership as one of our key converting partners in the region, and we are excited about the clear cultural and operational fit between the two companies.
“This acquisition expands our geographic footprint to better serve global and local customers, and will enable us to improve WestRock’s beverage packaging business in the region while expanding our participation to a variety of other attractive end markets.”
Hannapack managing director Sam Hanna will continue to lead the acquired operations. The acquisition price will be paid in cash and is subject to a customary net working capital adjustment.
Recently, WestRock has agreed to acquire the assets of corrugated boxes manufacturer Island Container.
The acquisition includes purchasing of corrugators and the corrugated converting operations located in Wheatley Heights, New York, and certain related fulfillment assets located in Saddle Brook, New Jersey.
Image: Hannapak provides folding cartons to a variety of markets, including beverage, food, confectionary, and healthcare. Photo: courtesy of Master isolated images / FreeDigitalPhotos.net.