WestRock has agreed to acquire five corrugated converting facilities from U.S. Corrugated for about $192m.
The deal includes facilities located in Ohio, Pennsylvania, and Louisiana.
The facilities are used to offer a suite of products and services to customers in different end markets, comprising of food and beverage, pharmaceuticals and consumer electronics.
The deal will not include U.S. Corrugated’s facilities in California, Georgia, and Ashland of Ohio, in addition to its affiliates in New Jersey and Tennessee.
The deal, which includes the payment of cash and offering WestRock common stock, is expected to complete in June this year.
WestRock CEO Steve Voorhees said: “This acquisition will enhance our capabilities to serve customers across the Midwest, increase our integration and improve the margins of our corrugated packaging business.”
WestRock corrugated packaging president Jeff Chalovich said: “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.”
U.S. Corrugated is an independent manufacturer of corrugated products for packaging and displays.
With around 250 operating and business locations in North America, South America, Europe and Asia, WestRock provides paper and packaging solutions to the customers.
The company produces various products, including containerboard, corrugated containers, displays, folding cartons, kraft paper, paperboard, partitions and protective packaging solutions.
