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WestRock to buy KapStone Paper and Packaging for $4.9bn

WestRock has agreed to acquire US-based KapStone Paper and Packaging for an enterprise value of around $4.9bn.

Under the deal, WestRock will purchase KapStone stock by paying $35.00 per share and assume about $1.36bn in net debt.

Based in Northbrook of Illinois, KapStone produces and supplies containerboard, corrugated products and specialty papers, including liner and medium containerboard, kraft papers and saturating kraft.

KapStone is also the owner of packaging solutions distribution firm Victory Packaging, which operates facilities in the US, Canada and Mexico.

The firm operates four paper mills, 22 converting plants, as well as manages 65 warehouses and distribution centers in North America.

The acquisition will add WestRock with paper grades and distribution capabilities, in addition to increasing mix of virgin fiber based paper in the firm’s paper portfolio.

KapStone’s corrugated packaging business provides a range of corrugator box plants, sheet plants and sheet feeders offering industrial and retail corrugated packaging solutions for all customers.

Subject to customary closing conditions, the deal is expected to complete by the end of September this year.

Once the deal concludes, WestRock will incorporate KapStone in its corrugated packaging segment.

KapStone operates four paper mills, 22 converting plants, as well as manages 65 warehouses and distribution centers in North America.

WestRock CEO Steve Voorhees said: “KapStone is a great fit with WestRock. Their complementary corrugated packaging and distribution operations will enhance WestRock’s ability to serve customers across our system, particularly in the western United States, and the addition of their specialty kraft paper products that we do not make enhances our differentiated portfolio of paper and packaging solutions,”

Earlier this month, WestRock completed the acquisition of corrugated packaging products provider Plymouth Packaging to expand its product solutions for multiple e-commerce and other custom-packaging applications.


Image: WestRock to acquire US-based KapStone Paper and Packaging. Photo: courtesy of adamr / FreeDigitalPhotos.net.