Nip Impressions logo
Tue, Oct 17, 2017 08:57
Visitor
Home
Click here for Pulp & Paper Radio International
Subscription Central
Items just for you
New publication added! Advertising Arguments 2015 book
Search
My Profile
Login
Logout
Management Side
Technical Side
WestRock to Acquire Five Facilities from U.S. Corrugated Holdings, Inc.

NORCROSS, Ga. -- WestRock Company announced that it has entered into a definitive agreement to acquire certain operations of U.S. Corrugated, a large independent manufacturer of corrugated products for packaging and displays.

WestRock will acquire five corrugated converting facilities in Ohio, Pennsylvania, and Louisiana from U.S. Corrugated, through which it provides a comprehensive suite of products and services to customers in a variety of end markets, including food & beverage, pharmaceuticals and consumer electronics. WestRock will not acquire U.S. Corrugated's facilities in California, Georgia, and in Ashland, Ohio, nor its affiliates in New Jersey and Tennessee.

"This acquisition will enhance our capabilities to serve customers across the Midwest, increase our integration and improve the margins of our corrugated packaging business," said Steve Voorhees, chief executive officer of WestRock. "We will be pleased to have the U.S. Corrugated employees at these five facilities join WestRock."

"When the transaction closes, we expect to realize significant synergies from supply chain optimization, better procurement, and integrating approximately 105,000 tons of the containerboard converted annually by the acquired facilities and another 50,000 tons under a long-term contract with a newly created company formed from the remaining assets of U.S. Corrugated," said Jeff Chalovich, president, Corrugated Packaging, WestRock.

WestRock will pay a total consideration of approximately $192 million, representing an EBITDA multiple of 5 times on a post-synergy basis. The consideration includes a combination of cash and WestRock common stock. The transaction is expected to be accretive to earnings in year one, and is expected to close in June 2017.


Printer-friendly format

 





Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: