US-based paper and packaging company WestRock has received approval from the US Department of Justice (DOJ) for the proposed acquisition of KapStone Paper and Packaging through Whiskey Holdco for approximately $4.9bn.
The DOJ clearance was the last antitrust approval required to complete the transaction and is subject to customary closing conditions.
The company will proceed to close the transaction on 2 November. The deal was announced in January, following a definitive agreement between the parties.
Holdco will own WestRock, KapStone and their respective subsidiaries after completion of the transaction.
At the time of the announcement, WestRock CEO Steve Voorhees said KapStone’s corrugated packaging and distribution operations will complement WestRock’s ability to serve customers, particularly in the Western US.
Voorhees said: “Importantly, KapStone and WestRock share the same dedication to serving customers. We look forward to welcoming the KapStone team members to WestRock and working with them to help make WestRock an even better company.”
The company also announced that it will finance the cash consideration through the issuance of new debt under a fully committed financing package.
Established in 2005, KapStone produces and distributes containerboard, corrugated products and speciality papers such as liner and medium containerboard, kraft papers and saturating kraft.
It also owns a packaging solutions distribution company Victory Packaging, which has operations in the US, Canada, and Mexico.