WestRock buys five facilities from US Corrugated for $192m
Packaging company WestRock has completed its previously announced acquisition of five corrugated converting facilities from US Corrugated in a deal valued at $192m.
Packaging company WestRock has completed its previously announced acquisition of five corrugated converting facilities from US Corrugated in a deal valued at $192m.
US Corrugated manufactures corrugated products for packaging and displays.
The five facilities located in Ohio, Pennsylvania and Louisiana, US, manufacture various products to serve the food and beverage, pharmaceuticals and consumer electronics markets.
They will operate as a part of WestRock’s Corrugated Packaging segment.
Announced last month, the transaction is expected to expand the company’s reach in regional markets.
"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 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.
“We will be pleased to have the US Corrugated employees at these five facilities join WestRock.”
WestRock plans to receive 105,000t of containerboard converted every year through the acquired facilities.
An additional 50,000t would be received under a long-term contract with a newly created company, formed from the remaining assets of US Corrugated.
The acquisition excludes US Corrugated’s facilities in California, Georgia, and in Ashland, Ohio, as well as its affiliates in New Jersey and Tennessee.
WestRock focuses on providing differentiated paper and packaging solutions.
The company has more than 250 operating and business locations across North America, South America, Europe and Asia.