US-based corrugated packaging firm WestRock has completed the acquisition of Multi Packaging Solutions International (MPS) for a total enterprise value of $2.28bn.
Under the deal, WestRock purchased all of the outstanding shares of MPS for $18.00 per share in cash, as well assumed an estimated $873m in net debt.
Based in New York, MPS produces print-based specialty packaging solutions for the customers in the consumer and healthcare sectors.
MPS manufactures different packaging products such as premium folding cartons, inserts and labels, in addition to rigid packaging products.
The company, which has 59 locations across North America, Europe and Asia, had reported evenue of about $1.6bn in the last fiscal year ended on 30 September, 2016.
The acquisition will allow WestRock to enhance its print, graphics and design capabilities, which can be used in applications such as spirits, confectionary, beauty and cosmetics.
WestRock CEO Steve Voorhees said: “I am excited about our acquisition of MPS, which is an important step in the continuing development of WestRock.
“MPS is a leader in the value-added packaging sector, and the addition of MPS to WestRock strengthens our differentiated portfolio of paper and packaging solutions.”
In May this year, WestRock 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.
WestRock produces paper and packaging solutions, including containerboard, corrugated containers, displays, folding cartons, kraft paper, paperboard, partitions and protective packaging solutions.
