US-based differentiated paper and packaging solutions provider WestRock Company has entered an agreement to purchase all assets of Plymouth Packaging.

Plymouth is a corrugated packaging firm that obtains approximately 70% of its sales from its ‘Box on Demand’ systems and corrugated fanfold, and 30% from traditional corrugated box packaging.

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The company currently delivers its latest ‘Box on Demand’ machines to more than 100 customers.

“The acquisition will improve our margin profile, our growth prospects in our corrugated packaging business and move us closer to our goal to be 80% integrated.”

The machines are manufactured by Italian automation company Panotec.

Under the terms of the deal, WestRock will buy Plymouth’s equity interest in Panotec, in addition to the company’s exclusive rights to distribute Panotec equipment in the US and Canada.

With the completion of the transaction, WestRock will be able to further integrate its containerboard system.

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The US firm currently delivers one-third of the approximately 60,000t of containerboard used by Plymouth Packaging each year and plans to fully integrate these containerboards after the closing of the transaction.

WestRock corrugated packaging business president Jeff Chalovich said: “The acquisition of Plymouth Packaging will further develop our innovation platform and our differentiation strategy.

“The addition of the ‘Box on Demand’ system will enhance our automated packaging systems business and WestRock’s differentiation in e-commerce and other custom applications where on-site box making is needed.

“The acquisition will improve our margin profile, our growth prospects in our corrugated packaging business and move us closer to our goal to be 80% integrated.”

The transaction includes the acquisition of Plymouth Packaging’s fanfold corrugated facilities in Battle Creek, Michigan; Ft. Worth, Texas; and Mechanicsburg, Pennsylvania, in addition to the entire range of its ‘Box on Demand’ machines located in customers’ facilities.

The conclusion of the transaction is subject to customary closing conditions.

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