Paper and packaging firm WestRock has agreed to acquire Cenveo Packaging in a $105m deal.
Based in Connecticut, the US, Cenveo Packaging operates six facilities across North America where it produces folded carton, shrink sleeve and litho-laminated display packaging.
Cenveo Packaging, a unit of print company Cenveo, has generated over $190m in revenue over the past 12 months.
Its products are supplied to food, beverage, pharma/nutraceutical, specialty tobacco and other consumer markets.
WestRock CEO Steve Voorhees said: "With attractive and complementary customers, markets and facilities, Cenveo Packaging will be an excellent addition to our consumer packaging business.
"By combining our operating expertise in folding cartons and integrating WestRock paperboard with Cenveo Packaging's packaging and printing capabilities, we will be able to better serve our customers while generating significant synergies and performance improvements."
In addition to Cenveo Packaging's facilities in the US, Canada and Dominican Republic, the acquisition also includes strategic sourcing partnerships in Asia and the Caribbean.
WestRock merchandising displays and folding carton, packaging solutions executive vice president Craig Gunckel said: "We are excited to be able to offer customers a wider network of facilities and a more diverse set of capabilities, including MiraFoil, cold foil and low migration ink systems, each of which will help our customers to be even more successful in their markets."
In October this year, WestRock has agreed to form a joint venture (JV) with Grupo Gondi in Mexico, creating a leading paper and packaging company in the country.
Grupo Gondi currently operates ten production sites that hold six paper machines, seven corrugated packaging plants and four modern high graphic folding carton plants with pre-printing capacity.
WestRock operates three corrugated packaging production facilities in Mexico which will be given to the JV in exchange for a 25% equity participation in the combined entity, which will operate as Grupo Gondi.
Grupo Gondi, as the majority shareholder, will manage the JV.
